Climate risk has become a major concern for financial institutions and financial markets. Yet, climate policy is still in its infancy and contributes to increased uncertainty. For example, the lack of a sufficiently high carbon price and the variety of definitions for green activities lower the...

We present an analytical framework for active strategic risk management for sovereign wealth funds (SWFs). This paper extends our previous work on foreign exchange reserves management that integrates risk-return objectives with macroeconomic, macro-prudential and sovereign debt management...

The financial sector has a key role to play in supporting the green transition. It is unrealistic to expect financial markets to induce the green transition unless the right signals come from the real economy. Unrealistic expectations can set the financial sector up for failure and derail the...

Using novel indicators of political connections constructed from campaign contribution data, we show that Brazilian firms that provided contributions to (elected) federal deputies experienced higher stock returns than firms that did not around the 1998 and 2002 elections. This suggests that...

Climate risk has become a major concern for financial institutions and financial markets. Yet, climate policy is still in its infancy and contributes to increased uncertainty. For example, the lack of a sufficiently high carbon price and the variety of definitions for green activities lower the...