Modeling Direct and Indirect Climate-related Physical Risks
This paper addresses the methodological challenges in quantifying physical risks associated with climate change.
Wednesday 25 November 2020
As we approach year-end, markets can count on two pieces of news to propel some optimism. The first comes from the US, where the Biden victory, without a real Blue Wave, is seen by markets as the best possible outcome. A Republican, or even a 50-50 senate, would make it very hard for the new president to pass any extreme measures in terms of fiscal push, more drastic legislation or tax increases. The other positive news came from Pfizer/BioNTech and Moderna, regarding the high efficacy of their vaccines, while other trials are also accelerating...
This paper addresses the methodological challenges in quantifying physical risks associated with climate change.
Delayed climate policies disproportionately impact lower income and emerging countries. Private investments are crucial to finance their transitions.
More fragmented economies and monetary policies would open more regional relative value opportunities that should support Hedge Funds.