4 votes

How to price, hedge ESG-dependent products?

I do not have direct knowledge to be completely clear, but I'm pretty certain that banks do not hedge these. I think if the bank loses money, they consider it a 'green investment' so they can claim ...
user avatar
  • 13.7k
3 votes

How to price, hedge ESG-dependent products?

It doesn't say exactly how it's structured, but does say the 'floating leg' of the swap is determined by an ESG score provided by Sustainalytics. Having worked with their data, their scores run from ...
user avatar
  • 1,578
2 votes
Accepted

What is the meaning of multiplying price of contingent claim with e.g consumption level?

You can assume two periods economy: calling them today and tomorrow is a convenient representation that is easy to relate to. Today is certain, tomorrow is not- the number of states is known, and the ...
user avatar

Only top scored, non community-wiki answers of a minimum length are eligible