The Changing Face of Global Risk
The world’s economic, financial, and geopolitical risks are shifting. But, as in the run-up to the global financial crisis in 2008, investors seem unable to estimate, price, and hedge tail risks properly.
The world’s economic, financial, and geopolitical risks are shifting. But, as in the run-up to the global financial crisis in 2008, investors seem unable to estimate, price, and hedge tail risks properly.
NEW YORK – The world’s economic, financial, and geopolitical risks are shifting. Some risks now have a lower probability – even if they are not fully extinguished. Others are becoming more likely and important.
A year or two ago, six main risks stood at center stage:
· A eurozone breakup (including a Greek exit and loss of access to capital markets for Italy and/or Spain).