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.
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).
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