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Attend the webinar "Climate Risks: Are the Markets Asleep at the Wheel?" - Riccardo Rebonato

On Tuesday, November 28, 2023, Riccardo Rebonato, EDHEC Professor and EDHEC-Risk Climate Impact Institute Scientific Director, is giving an online lecture (4 pm GMT) based on his paper “Asleep at the Wheel? The Risk of Sudden Price Adjustments” (2023), forthcoming in The Journal of Portfolio Management.

 

Reading time :
21 Nov 2023
Climate Risks: Are the Markets Asleep at the Wheel? - Riccardo Rebonato

A large number of studies has failed to date to identify a robust and economically significant climate risk premium or climate beta, either at the aggregate or at the sectoral level.

Could it be that the market has already impounded all the relevant information?; that it expects limited damages?; or that damages are so far in the future to be irrelevant on a discounted basis? What if markets were not informationally efficient and were underestimating the potential impacts from climate change? The latter mispricing hypothesis leaves open the possibility of repricing, either in a gradual or in an abrupt way. One could argue this is a novel source of risk, which should be on the radar screen of long-term investors.

 

EDHEC-Risk Climate Impact Institute and the EDHEC Risk & Insurance Alumni Club are pleased to invite you to an exclusive webinar by Riccardo Rebonato: "Climate Risks: Are the Markets Asleep at the Wheel?" on Tuesday 28 November at 5:00pm CET.

To register to this webinar, follow this link

 

Professor Riccardo Rebonato, EDHEC Professor and Scientific Director of the EDHEC-Risk Climate Impact Institute will provide insights into his paper titled “Asleep at the Wheel? The Risk of Sudden Price Adjustments”, forthcoming in the Novel Risks issue of The Journal of Portfolio Management. He will review the merits of various market efficiency explanations for the elusive sensitivity of asset prices to climate risk and explore why current market prices may be underestimating the effects of climate risk on government revenues and the cashflows of companies.

The webinar will address the following issues:

  • Do prices respond to climate shocks?
  • Are climate outcomes relevant to asset pricing?
  • How plausible is a climate soft landing?
  • Could it be that damages are too far in the future to matter in present value?
  • Should we be concerned about mispricing and repricing?

The webinar will be moderated by Fanny Spinetta, the former Head of Reinsurance at AXA, and Co-Founder of the EDHEC Risk & Insurance Alumni Club.

 

This news has been initially published on climateimpact.edhec.edu

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