We study how global equity markets price the physical climate risk associated with tropical cyclones. To assess firms’ exposure to this risk, we use a bottom-up, forward-looking measure of firms’ expected losses to their geolocalized physical assets based on simulated cyclone tracks under different climate scenarios (RCP 2.6, 4.5, and 6.0).
In the wake of Donald Trump’s victory in the US presidential election, we share some analysis from portfolio manager Kirstie Spence on the impact on emerging markets, focusing on expansionary fiscal policy and potential protectionism/tariffs.