Chairman of the Risk Committee and Founding Partner, Kepos Capital Robert “Bob” Litterman explains the lack of appreciation in the diversity of incentives to reduce emissions across the globe.
In this discussion, Litterman highlights the importance of placing a price on climate risk on carbon emissions would be considerable move in the right direction for the US.
You can now view the full video at the link below
Emerging markets (EM) have been regarded as a high risk, and predominantly risk-on asset class, when the Covid crisis occurred in Q1, 2020. Fears centred on the risks of deep contagion across the asset class, characteristic of previous crises in the late-1990s, and during the GFC, should cross-border capital flows collapse, after Lockdowns and extreme risk aversion.
After a protracted period of calm, volatility returned to markets in 2022—and has proven it’s here to stay in 2023. Investors are now looking to position portfolios for a potentially bumpy road ahead, leading to renewed interest in defensive strategies.
Despite the plummet in issuance during the latter half of 2022, green bonds have defied expectations and made an impressive resurgence in the first quarter of this year, with quarterly issuance reaching all time high of over USD 150 billion[i]. While broader market challenges and uncertainty persist, we look at the growth dynamics for green bonds.
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