China adopted its first corporate governance code in 2001, ahead of many APAC peers, with updates in 2011 and 2016. As China’s market becomes more accessible to global investors, corporate governance practices will likely face increased comparison to global standards. Our report references MSCI ESG Research’s rich corporate governance data to examine the opportunities and risks to minority shareholders presented by current corporate governance practices in the MSCI China Index.
High skew levels indicate heightened fears of “tail risk” – the chances of unlikely but highly consequential events that could sink share prices. Low market volatility largely continued through the summer, but how has options skew behaved – has it fallen to more “normal” levels? Do institutional investors appear to be dropping or keeping their downside protection?
Convertible bonds have “bonds” in their name but in reality they are complicated corporate securities with risk characteristics that often have little to do with straight bonds. Are they more like stocks or bonds? And how can investors evaluate and model them?
In today’s convertible bond market, the key driver of returns relates to the value of the underlying equity. In contrast, bond market exposure (in the form of yield curve and spread risk) has played a relatively minor role in driving convertible bond risk and return in the recent past and seems likely to play a minor role in the year ahead, based on our model. Read more
Understanding the performance of credit portfolios is essential in explaining a strategy’s merits to clients and prospects. At the same time, analysts need to comprehend the portfolio’s exposure to different sources of risk, identify unintended bets and clearly communicate risk forecasts. Integrating these processes to achieve a coherent, side-by-side attribution of both risk and return creates a powerful analytical tool.
Headline-making accounting scandals, like those at Toshiba, Tesco, Sino-Forest and many others in recent years, can cost shareholders dearly, through stock price declines and subsequent litigation. But the potential for harm isn’t limited to these “black swan” events. A notable survey of nearly 400 chief financial officers found that in any given period, a remarkable 20% of companies may intentionally distort earnings, even while adhering to Generally Accepted Accounting Principles (GAAP).
Join our webinar to understand, identify and manage accounting risk in investment portfolios.
• Problems associated with accounting risk in investment portfolios
• Forensic accounting as an investment tool: what does the research show?
• Forensic accounting in global stock selection
Dec 16, 2015, 930am ET
Emission reduction pledges tabled by 147 nations in advance of the COP21 talks put the world on course for a 2.7°c rise in temperature by the end of the century – not enough to prevent the severe effects of climate change impacting a growing global population expected to need 35% more food, 40% more water and 50% more energy by 2030.
The long term risks to investors have been well documented, but a recent report by the University of Cambridge indicates that investors could lose up to 45% of their global investment portfolios as a consequence of short-term shifts in climate change sentiment. Institutional investors have a pivotal role to play in moving the needle on climate change. They also need to understand the risks and opportunities posed by the political, economic and regulatory transformations required to keep global temperatures below 2°c.
Join our webinar to analyze the COP21 fine print, dissect the outcomes, and speak with experts who attended the talks.
Chair: Linda-Eling Lee, Global Head of ESG Research, MSCI
Mark Campanale, Founder and Executive Director, Carbon Tracker Initiative
Stephanie Pfeifer, Chief Executive, Institutional Investor Group on Climate Change
Véronique Menou, Head of Thematic Investing, MSCI
The Volkswagen (VW) scandal caught many investors off guard. The repercussions are likely to be felt across the automobile industry for many years to come affecting companies and investors alike. The scandal shines a light on the need for greater corporate transparency. It also ignites the debate over the value of ESG data to detect signals which may be missed by conventional analysis.
Join our panel of experts to examine what ESG data and research can tell us about the scandal. The lessons learned. What are the possible repercussions for automobile industry and what signals are available to investors to potentially detect future black swans.
||Chair – Linda-Eling Lee, Global Head of ESG Research, MSCI
||Alan Brett, Head of Corporate Governance Ratings Research, MSCI
||Arne Klug, Senior Analyst for the Automobiles Industry, MSCI
||Ian McVeigh, Head of Governance, Jupiter Asset Management
WEBINAR: EXTENSIONS OF CREDITMETRICS METHODOLOGY: DEVELOPING DEEPER CREDIT RISK INSIGHTS
Please join us for a webinar focusing on RiskMetrics® CreditManager, and the underpinning CreditMetrics methodology, which has been used by practitioners for years to help quantify credit migration and default risk at horizons of one year and longer.
Recent extensions to the CreditMetrics methodology allow for deeper insights into credit risk.
- Parameter Selection and Validation: Is Definition of ‘Risk’ Appropriate in Terms of Quantile Used and Correlation Modeled?
- Correlated Recovery: A Must, or Too Much? Should Recovery Rates Depend on Market Factors?
- Concentration Add-Ons: How Much Risk is Driven by Concentration?
- Interpreting Economic Capital Contributions: What Factors Drive Risk at a Given Quantile?