Club Risques & Assurances | Webinar: Climate Risks: Are the Markets Asleep at the Wheel?
Webinar: Climate Risks: Are the Markets Asleep at the Wheel?
Tuesday, November 28, 2023 - 5pm CET - 4pm GMT - 11am EDT
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 markets have already impounded all the relevant information?; that markets expect 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. We 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 Alumni Finance and Risk & Insurance Clubs are pleased to invite you to an exclusive webinar: Climate Risks: Are the Markets Asleep at the Wheel? on Tuesday 28 November at 5:00pm CET.
Professor Riccardo Rebonato, Scientific Director of 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?
Speaker
Riccardo Rebonato, Ph.D.
Riccardo Rebonato is Scientific Director of EDHEC-Risk Climate Impact Institute and Professor of Finance at EDHEC Business School. He heads EDHEC-Risk Climate Impact Institute's "Impact of Climate Change on Asset Prices" research programme. Riccardo holds doctorates in Nuclear Engineering and Condensed Matter Physics. He has held senior positions at Edinburgh University, Oxford University and Imperial College, London, as well as at some of the world's leading international financial institutions, and served on the boards of ISDA and GARP. He has written 10 books on finance and political economics: his latest deals with using economics to tackle climate change. The Journal of Portfolio Management named him 2022's "PMR Quant Researcher of the Year".
| Register here |
For any additional information, please contact Maud Gauchon on +33 493 187 887 or at maud.gauchon@climateimpactedhec.com.
Staff EDHEC Alumni
