The climate crisis poses a systemic threat to financial markets and the real economy, with significant disruptive consequences on asset valuations and economic stability. Join us as we discuss the implications for markets, regulators, across industries and indeed for fiduciaries and asset managers.

Presentation by Veena Ramani Senior Program Director, Capital Market Systems, Ceres

Followed by a panel discussion with:

Climate change is primarily a risk-management issue for investors. The interaction of uncertainty around climate impacts and our utility in extreme states argues for rapid coordinated global action. The transition away from carbon-intensive economic activities will take decades, but market expectations could change quickly. Positioning portfolios ahead of this transition is a timely strategy with potential for both risk and return payoffs.

Speakers:

Global supply chains are a central organizing mechanism of the economy. Their effective management involves making trade-offs between network efficiency and resilience, as well as broader environmental, social, and governance impacts. This paper focuses on understanding global supply chains’ exposure and vulnerability to increasing climate extremes by analysing revenue-at-risk and response capacity to increasing climate extremes at 10,250 sites across the United States and China.

Pricing greenhouse gas emissions involves making trade-offs between consumption today and unknown damages in the (distant) future. This setup calls for an optimal control model to determine the carbon dioxide (CO2) price. The Epstein-Zin Climate model suggests a high optimal carbon price today that is expected to decline over time as uncertainty about the damages is resolved. It also points to the importance of backstop technologies and to very large deadweight costs of delay. Join Robert Litterman as he discusses pricing climate change risk in markets.

Speaker:

Oct. 19–Nov. 6, 2020

This comprehensive set of learning modules led by senior risk leaders at mortgage-specializing institutions. Topics include elements of risk governance, mortgage credit risk management, operational risk management for mortgage lending, secondary marketing risk management and mortgage risk analytics, among other key risk topics. 

How risk managers are adapting.

The pandemic has How have risk managers adapted to this new world where public safety issues drive economic and financial outcomes?

Sridhar "Subra" Subramanian, Head of US Consumer Risk, BMO Harris Bank will discuss with Professor Cliff Rossi the challenges associated with developing reasonable scenarios for stress testing bank portfolios during unprecedented times, data issues and key assumptions that go into building robust scenario analysis.

In lieu of our traditional annual Mortgage Risk Summit, please join us for the first of three digital events, all featuring key speakers and industry leaders from the MRS itself.

Join Stefano Giglio as he proposes and implements a procedure to dynamically hedge climate change risk. The resulting hedge portfolios outperform alternative hedging strategies based primarily on industry tilts. Stefano will conclude his discussion and explore directions for future research on financial approaches to managing climate risk.

Speaker:

Stefano Giglio, Yale School of Management

Read Professor Giglio’s research co-authored by Nobel Laureate Robert Engle before the event.

We find that stocks of firms with higher total CO2 emissions (and changes in emissions) earn higher returns, after controlling for size, book-to-market, momentum, and other factors that predict returns. We cannot explain this carbon premium through differences in unexpected profitability or other known risk factors. Overall, our results are consistent with an interpretation that investors are already demanding compensation for their exposure to carbon emission risk. Join Patrick Bolton and Marcin Kacperczyk as they discuss carbon risk and if investors care.

Speakers:

David Hirshleifer, Distinguished Professor of Finance, Merage Chair in Business Growth, UC Irvine

Join the CFP and UBS where Russ Wermers and David Hirshleifer discuss social transmission bias in economics and finance and how it affects social processes shaping economic thinking and behavior. David uses “fables” (models) to illustrate the novelty and scope of the transmission bias approach, and offers several emergent themes which can help explain booms, bubbles, return anomalies, and swings in economic sentiment.