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Banking Essentials - Part I
This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.
Greenwashing
Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.
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Tackling the Cost of Living Crisis
In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.
CSR and Sustainability in Financial Services
In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.
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Mark Homans
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Fiona Quinn
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Categories
Discover our Courses
Featured Pathways
More pathways
Banking Essentials - Part I
This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.
Greenwashing
Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.
More pathways
Ready to get started?
Plans & Membership
Find the right plan for you
Our Platform
Expert led content
+1,000 expert presented, on-demand video modules
Learning analytics
Keep track of learning progress with our comprehensive data
Interactive learning
Engage with our video hotspots and knowledge check-ins
Testing & certification
Gain CPD / CPE credits and professional certification
Managed learning
Build, scale and manage your organisation’s learning
Integrations
Connect Finance Unlocked to your current platform
Featured Content
More featured content
Tackling the Cost of Living Crisis
In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.
CSR and Sustainability in Financial Services
In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.
More featured content
Ready to get started?
Our Solutions
About Us
Testimonials
More testimonials
Mark Homans
Our sky high NPS following learner feedback speaks for itself - this platform has delivered a lot of value.
Fiona Quinn
Learning is accessible and the tool assists in the continued development of all our employees. It is a fantastic tool for our business!
More testimonials
Ready to get started?
Asset Pricing Theory of Climate Hedge Portfolios
Robert Engle
Nobel Prize winning economist
In this video collaboration with MMF, Nobel Laureate and economist Robert Engle explores the asset pricing theory behind hedge portfolios, as well as how you would build a portfolio using either fundamental or statistical analysis.
In this video collaboration with MMF, Nobel Laureate and economist Robert Engle explores the asset pricing theory behind hedge portfolios, as well as how you would build a portfolio using either fundamental or statistical analysis.
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Asset Pricing Theory of Climate Hedge Portfolios
6 mins 14 secs
Robert Engle argues that risky stocks are less desirable than stocks which are minimally risky. Stocks that are exposed to climate risk are not desirable but could expect to have higher expected returns and a hedge investor will want to short this risk. To build a hedge portfolio, fundamental analysis can be undertaken based on how climate change is going to impact industries or statistical analysis which recognises how stocks will react based on climate change news.
Key learning objectives:
Learn what a climate hedge portfolio is
Understand two analytic approaches to building a climate hedge portfolio
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What is the asset pricing theory behind hedge portfolios?
Brown stocks are less desirable than green stocks. Stocks that are exposed to climate risk are not desirable but could expect to have higher expected returns and a hedge investor will want to short this risk. However, shorting these companies that are exposed to risk and going long companies that are not exposed to this risk, means you're going to achieve a negative risk premium. This says that your investment is going to underperform the market on average, which is a bad selling point to investors.
What are the two analytic approaches to building a hedge portfolio?
1. Fundamental analysis
This involves using data to frame how you think climate change is going to impact different industries. However, ESG data is often criticised as incomplete and not measuring specifically what is needed.
2. Statistical analysis
This recognises that when there is news about climate change, we would know which stocks are going up and which ones are going down and use this as a basis to form this portfolio.
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Robert Engle
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