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    Tilting at Wind Turbines

    Podcast | Sep 29, 2023 | Elchin Mammadov

    Despite growing demand for clean energy, price parity with fossil fuels and friendly policies, renewable energy companies are facing some tough headwinds. We take a look at why that's happening and what Orsted’s no good, very bad August can tell us about the rest of the industry.

    What Connects Correlation and Tax-Loss Harvesting?

    3 mins read Quick Take | Sep 28, 2023 | Joseph Wickremasinghe, Yuliya Plyakha Ferenc

    Selling a capital asset at a loss to reduce your tax liability is one side of the coin. The other side is thoughtfully selecting the security that replaces it.   

    Ladies and Gentlemen, the MSCI Sustainability Institute

    Podcast | Sep 28, 2023

    The launch of the MSCI Sustainability Institute, founded and led by Linda-Eling Lee was attended by some of the most highly respected members of the ESG-investment community. We explore the institute’s aims and how it will work with investors, companies, academics and policymakers to drive action by capital markets.

    Low Volatility Today. Concern or Opportunity for Tomorrow?

    3 mins read Quick Take | Sep 27, 2023 | Dinank Chitkara, Hitendra D Varsani

    The cost of hedging downside equity exposure has fallen substantially versus eight months ago, markedly lowering the price of insurance against rising equity volatility.

    EU Taxonomy Reporting Has Perplexed Issuers

    4 mins read Blog | Sep 26, 2023 | Nakul Jadhav, Amandeep Kaur

    Although the EU Taxonomy is a pivotal framework for assessing sustainability in economic activities, it remains a source of confusion. Its correct interpretation will be key to ensure that data is properly disclosed and reporting obligations met.

    Biodiversity and Business: Are Companies Aware of Nature’s Risks?

    5 mins read Blog | Sep 25, 2023 | Shitiz Chaudhary, Arne Philipp Klug

    Although corporate disclosures around biodiversity- and nature-related risk vary, with growing stakeholder awareness and initiatives such as the TNFD framework, we may see a move toward more standardized disclosures that could help investors better assess these risks.

    What’s Been Driving the Carbon Footprint of MSCI’s ESG Indexes?

    5 mins read Blog | Sep 22, 2023 | Xinxin Wang, Manish Shakdwipee, Guido Giese

    We analyze the index-level carbon emissions of the MSCI ACWI, ACWI ESG and Socially Responsible Investing Indexes, in terms of both financed emissions and emissions intensities, to see what the trends are and what’s driving them.

    The United Auto Workers of ESG

    Podcast | Sep 22, 2023 | Michael Disabato, Yu Ishihara

    The demands made by the United Auto Workers (UAW) to the big three auto companies in the US are varied and touch on every part of ESG. But what may loom largest is the ongoing transition to electric vehicles that will change how a massive industry operates and employs its millions of workers. We discussed what the strikes mean for the future of the auto industry, and why the UAW is fighting an uphill battle as its industry changes.

    Underperforming Growth Managers Showed Skill

    2 mins read Quick Take | Sep 21, 2023 | Naoya Nishimura, Abhishek Gupta

    Over the last several years, most active growth managers underweighted the “Magnificent Seven.” Nearly two-thirds of growth managers, however, partially or more than offset the resulting performance drag with active bets on other stocks.

    Loss Aversion and Property-Market Liquidity

    5 mins read Blog | Sep 20, 2023 | Tom Leahy

    Investors do not like to realize losses. We examine the link between this loss aversion — an observed phenomenon in commercial-property markets — and a drop in liquidity in key markets around the globe. 

    Biodiversity Funds: Welcome to the Jungle

    5 mins read Blog | Sep 20, 2023 | Rumi Mahmood, Shuang Guo

    Biodiversity is the new kid on the block in sustainable investing, and a lack of harmonization makes it a jungle out there. We assessed how biodiversity-labeled and biodiversity-related funds differed in sector and revenue exposure and performance. 

    Engagement Is a Powerful Force in Climate Action

    5 mins read Blog | Sep 19, 2023 | Chris Cote, Harlan Tufford

    As the urgency of addressing climate change continues to grow, investor engagement could be key to holding companies accountable for their environmental impact and influencing corporate climate strategies and net-zero commitments. 

    The Potential Impact of El Niño on Sovereign Debt

    6 mins read Blog | Sep 18, 2023 | Alexander Schober, Cole Martin

    With a very strong likelihood of an El Niño event forming by the end of 2023, we take a look at the impact such events have had in the past on the debt-to-GDP ratios of global sovereigns and what this could mean for impact investors.  

    Better Incentives Could Quicken a Return to the Office

    4 mins read Blog | Sep 15, 2023 | Jim Costello

    Office vacancy has reached a record high for properties in central business districts. Forms of compensation to attract people back to offices could include improved mass transit and reduced travel time.  

    El Nino Arrives and Debt Thrives

    Podcast | Sep 15, 2023

    We have likely entered in to an El Nino season as of June 2023. El Nino forms and then eventually dissipates as trade winds that blow to the south of the equator shift and impact the flow of the ocean below them. This means the world gets hotter, even hotter than the record heat we have already seen (which is tough to hear). In this episode, we discuss what that sort of warming will likely do to global crop yields and the debt levels of the world’s economies.

    Nearshoring, Friendshoring and Reshoring: Heads Up to Equity Allocators

    5 mins read Blog | Sep 13, 2023 | Oleg Ruban

    Multinational corporations’ recent interest in reconfiguring their global supply chains and adopting “China-plus” manufacturing strategies has potential consequences for equity allocators, reaching across countries, sectors and themes.   

    Net-Zero Glidepaths for Fixed-Income Portfolios

    Research Report | Sep 12, 2023 | Afsaneh Mastouri, Juan Sampieri

    A bond portfolio generates cash flows over time that include coupon payments and the face value of matured bonds, assuming no defaults. With controlled and systematic reinvestment of this cash flow, investors can gradually decarbonize their portfolios on a glidepath.

    Unearthing Real Estate Trends in Commodity Cities

    4 mins read Blog | Sep 12, 2023 | Bryan Reid

    Cities that ride booms and busts in commodity prices have in the past achieved strong outperformance in commercial-property returns during booms. Has the recent surge in commodity prices had a similar impact on returns? 

    Textile Waste and Travelling Skirts

    Podcast | Sep 8, 2023 | Liz Houston

    With fashion brands now producing 52 “micro seasons” a year, more and more clothing is being unsold or discarded. And recycling clothing is more difficult than you may think. As the EU looks to increase accountability for post-consumer waste, we take a look at what it could mean for clothing companies and their investors.

    Is European Sustainable Finance Green?

    Podcast | Sep 4, 2023 | Michael Disabato, Rumi Mahmood

    The EU has set up a number of regulations to define what is and is not sustainable. Part of those regulations touch investment funds as most assets under management in Europe (~EUR 7 trillion out of EUR 12 trillion) are invested in ESG funds or strategies with some sustainability-related focus. Is this episode we look at what the effect of these defining regulations has been on the fund investment landscape in Europe, and whether the EU has been successful in its intent. 

    Labeled Bonds Quarterly Market Overview Q2 2023

    Research Report | Aug 31, 2023 | Jakub Malich, Anett Husi

    We assess the latest trends in labeled bonds, from the overall market to specific bond and issuer characteristics, to identify key developments in the rapidly growing and increasingly diverse labeled-bond market. 

    Factor Performance amid Concentration Shifts

    2 mins read Quick Take | Aug 30, 2023 | Abhishek Gupta, Román Mendoza

    Noting the parallel between today’s technology- and AI-driven concentrated rally and the late 1990s’ technology boom, we examined factor performance and factors’ over- and underweights in the top 10 MSCI USA Index constituents over both periods. 

    Equity-Factor Commentary July 2023: Fireworks and Froth

    5 mins read Blog | Aug 25, 2023 | George Bonne

    The risk-on market rally continued in July amid several indicators of frothiness as beta and residual volatility posted the highest factor returns in the U.S. by a wide margin and were also strong globally.

    There’s AI in My Boardroom

    Podcast | Aug 25, 2023 | Harlan Tufford, Tanya Matanda

    Artificial intelligence is rolling out in a big way across different industries and sectors. With much to lose and much to gain from this new trend, investors will be looking to boards that ask good questions and get good answers – even if that means letting AI into the boardroom.

    Ashley Lester: Don’t Call it a Comeback

    Podcast | Aug 24, 2023

    We sat down with MSCI’s global head of research for a wide-ranging discussion, including why he chose to return to the company now, the challenges and opportunities facing the investment industry and a unique take on risk management, ESG and climate and AI and technology. 

    India's Leap into Lunar Exploration and the Global Economy

    2 mins read Quick Take | Aug 23, 2023 | Rohit Gupta, Raman Subramanian

    Beyond the symbolic nature of being the first to land on the moon's south pole, this feat underscores India's shift towards technology-driven innovation and could mark an expanding global role and increasing prominence in global equity portfolios. 

    Do Not Fear the Impact of AI on Commercial Real Estate

    5 mins read Blog | Aug 22, 2023 | Jim Costello

    Worries about artificial intelligence supplanting knowledge workers have created more pain for the office market but a broader view of the impact on commercial real estate is vital. 

    The Ups and Downs of Small Caps and Inflation

    2 mins read Quick Take | Aug 21, 2023 | Ashish Lodh, Saurabh Katiyar

    Inflation appears to have peaked at the end of 2022, but it remains influential in capital markets. We analyzed nearly 50 years of data to assess how small caps’ performance has changed with shifts in both the level and trend of inflation.  

    Understanding the Drivers of Transition-Risk Climate VaR

    5 mins read Blog | Aug 18, 2023 | Zoltán Nagy, Rob Barnett, Guido Giese

    Climate stress-testing models like MSCI Climate VaR may be complex, but their main mechanisms can be explained using linear regression. This helps transform input variables into risk outputs, making it easier for investors to understand the primary drivers.  

    Are Bonds and Equities Finding Harmony Once Again?

    2 mins read Quick Take | Aug 17, 2023 | Juan Sampieri, Andy Sparks

    The relationship between U.S. bonds and equities has seen a number of shifts in recent years, but with inflation pressures easing, could bonds regain their reputation as portfolio diversifiers? 

    Insights from Past Concentrated Rallies and Thematic Opportunities

    5 mins read Blog | Aug 16, 2023 | Dinank Chitkara, Rohit Gupta

    The rally in the first half of 2023 shared some similarities, and had notable differences, with past concentrated rallies. In addition to AI, structural megatrends, such as the blockchain economy and robotics, helped drive the rally. 

    Student Housing: Passing Surge or Graduating to the Big Leagues?

    6 mins read Blog | Aug 15, 2023 | Niel Harmse

    Student housing continues to evolve as a distinct asset type. The sector outperformed the rest of the U.K. residential sector as well as the retail and office sectors over the three, five and 10 years ending December 2022.

    Australia Capital Trends Report

    Research Report | Aug 10, 2023

    In this report we isolate the trends shaping the Australian market in Q2 2023. Australia's commercial property market continued its significant slowdown with transaction volume totaling just $7.0b in the second quarter of the year. This represents the worst second quarter performance since 2011. 

    AI’s Moment and Insights from Themes Past

    6 mins read Blog | Aug 9, 2023 | Anil Rao

    Enthusiasm for artificial intelligence has boosted the stock prices of many U.S. technology behemoths this year. How does the AI rally compare to previous market shifts, and what lessons might investors in today's largest firms learn from history? 

    Tracking Multi-Asset-Class Portfolios’ Emissions

    8 mins read Blog | Aug 8, 2023 | Xinxin Wang, Zoltán Nagy, Guido Giese

    Our previous research discussed a framework for investors to attribute changes in equity portfolios’ emissions to their primary drivers. We now adapt it to identify and analyze two approaches to tracking a multi-asset-class portfolio’s carbon footprint. 

    The Fight Between Food and Forests

    Podcast | Aug 4, 2023 | Cole Martin

    Commodities like palm oil, beef and cocoa are intertwined with deforestation. The EU wants to change this. We talk about the bloc’s latest law and how it’s going to ask food companies to take supply chain due diligence and traceability to a whole new level.

    Global market trends and the Magnificent 7

    Videos and Visualisations | Aug 3, 2023

    Global equity markets bounced back strongly this year. However, the market returns have been driven by “Magnificent 7” and the rise of artificial intelligence. Mark Carver and Hitendra Varsani discuss the broader market overview, key trends in performance across factors, thematic and regional indexes and some great insights on investors’ thinking regarding equity factors and their evolving role in asset allocation.

    Banking on Commercial Real Estate

    2 mins read Quick Take | Aug 3, 2023 | Bryan Reid

    Concerns about U.S. banks’ exposure to a slumping commercial-property market have put pressure on bank stocks. We analyze a sample of banks to discern differences in lending patterns by property type and location. 

    Fixed-Income Markets in Focus: On the Road to Recovery?

    Videos and Visualisations | Aug 2, 2023

    Certain recession indicators are flashing red. Learn how investors are evaluating bonds versus equities in light of these warning signs.

    Private Real Estate Valuation and Sale Price Comparison 2022

    Research Report | Aug 2, 2023 | Girish Walvekar, Vinay Kakka

    Investment performance is measured using transaction prices in most asset classes. But real estate is illiquid and heterogeneous, so valuations and sales prices can differ. Our annual report compares valuations and sale prices in global real estate. 

    Making the Most of Mandatory Climate Disclosures

    4 mins read Blog | Aug 1, 2023 | Rob Barnett, Sylvain Vanston

    As TCFD reporting grows more sophisticated, investors may be able to use climate data to make meaningful disclosures across their firms. We explore three key topics: choice of metrics, internal consistency and cross-functional applications. 

    Climate and ESG Indexes in Focus: Let’s Get Specific

    6 mins read Blog | Jul 31, 2023 | Manish Shakdwipee, Guillermo Cano, Xinxin Wang

    How did our flagship climate and ESG indexes fare versus the broader market in the second quarter? And how much did constituent companies decarbonize since the quarter before? We delve into the specifics.

    A Turbulent Plan for Green Aviation

    Podcast | Jul 31, 2023 | Michael Disabato, Bentley Kaplan

    Airlines have been offering customers with the option to purchase carbon credits or to support sustainable aviation fuel as they are buying a plane ticket. The airlines claim in doing so, the customer can lower the emissions of their trip and thereby lessen its impact on climate change. Sounds great! But, is that true? Are your emissions really lowered by those carbon credits? And can airlines use the promise of abated emissions, or better yet, sustainable fuels, to claim they are already carbon neutral? On this episode, we discuss aviation’s ambitious climate plans, why some of the advertising around these plans has gotten the industry in to legal trouble, and what the future holds for airlines and passengers that are worried about their carbon emissions.

    Bond Performance in 2023: A Midsummer Reflection

    2 mins read Quick Take | Jul 26, 2023 | Andy Sparks

    The good news for bond investors is that year-to-date U.S. returns have been positive. But bond returns were not as good compared to inflation, and bonds have continued to lag equities. 

    Real Estate Market Size 2022

    Research Report | Jul 24, 2023 | Razia Neshat, Rishikesh Patkar

    We estimate the size of the professionally managed global real-estate market in 2022, explaining the changes in this investment universe since 2021. We find that while the size of the global market declined, the dominance of the U.S. increased. 

    Big Tech is Knock Knock Knockin’ on the GDPR’s Door

    Podcast | Jul 21, 2023 | Andrew Young, Yoon Young Chung

    User privacy on internet platforms is sliding higher up the “to do” list of the EU’s regulators. Five years after a trailblazing law was passed – the General Data Protection Regulation (GDPR) – we’re starting to see its enforcement moving up a notch. For big tech companies that rely on personalized advertising, like Meta and Alphabet, their future in the EU is starting to look a little more complicated.

    Distress in US Commercial Property Increased Further

    2 mins read Quick Take | Jul 21, 2023 | Alexis Maltin

    The office market was the largest source of distress in U.S. commercial property in the second quarter, ahead of retail and hotel, which had previously been the biggest contributors of troubled assets. We summarize our latest findings on distress. 

    RCA Commercial Property Price Indexes (RCA CPPI)

    Research Report | Jul 20, 2023

    The RCA CPPITM measure the actual price movements for commercial properties based on exclusive transaction data using repeat-sales regression methodology.​ MSCI produces this monthly report for 10 U.S. national indexes, including all-property, major and non-major metros, and for the main property types — office (commercial business district and suburban), industrial, retail and apartment. Contact us for full access to our CPPI data for deeper insight on property price trends for the U.S....

    Do Agency CMOs’ Financed Emissions Have Duration?

    4 mins read Blog | Jul 20, 2023 | Joy Zhang, Yihai Yu, Anant Bhatnagar

    The market for collateralized mortgage obligations backed by agency residential mortgage-backed securities is a major source of financing for U.S. homeownership. But what is this market’s total emissions footprint? We use our model to calculate it. 

    Extreme Weather Unlikely to Revert to the Mean

    Podcast | Jul 20, 2023 | Gillian Mollod, Katie Towey

    Physical risk from climate change has started to affect nearly every region of the world, from the four hottest days on record occurring in a row this month to more frequent, more intense storms. We discuss what this all may mean for companies, insurers and investors.

    More Global Issuers Have Engaged on ESG Ratings

    2 mins read Quick Take | Jul 19, 2023 | Emma Wu, Jinghan Zhu

    Corporate issuers across market-capitalization ranges, regions, countries and sectors are increasingly seeking information, offering feedback and sharing updates related to ESG and climate data. What have been the areas of focus? 

    Funds and the State of European Sustainable Finance

    Research Report | Jul 18, 2023 | Rumi Mahmood, Sita Subramanian, Shuang Guo

    We assess the degree of sustainability-related disclosures for European-domiciled funds, their performance on, and disclosure of, select adverse impact indicators, and exposure to sustainable investments. 

    Small Caps Have Been a Big Story After Recessions

    6 mins read Blog | Jul 17, 2023 | Saurabh Katiyar, Ashish Lodh

    Some investors are already evaluating opportunities offered by a post-slowdown world. One of these opportunities is small-cap stocks, which have historically outperformed large caps, especially after recessions.  

    Labeled Bonds: Quarterly Market Overview Q1 2023

    Research Report | Jul 14, 2023 | Jakub Malich, Anett Husi

    We assess the latest issuance trends and the overall market by multiple bond and issuer characteristics to identify key developments in the rapidly growing and increasingly diverse labeled-bond market. 

    It’s too Damn Hot for Investors

    Podcast | Jul 14, 2023 | Mathew Lee

    Our planet’s hottest days on record were recorded July 3 to July 5. Global average temperatures rose to a new high of 62.9 Fahrenheit. And even as the days get less sweltering, we all seem to be collectively looking around wondering what might happen next month. It is a collective fear that doesn’t seem to have rattled the market. Even so, today we discuss what the ever increasing temperatures mean for the companies you invest in and what cities might be most affected in the coming decades if the world continues to warm.

    Breaking Down Financed Emissions for Agency RMBS

    5 mins read Blog | Jul 11, 2023 | Joy Zhang, Michael Ridley, Sara Shen

    Agency residential mortgage-backed securities (RMBS) finance about 17% of U.S. residential greenhouse-gas emissions annually. We break down that number to help issuers and investors understand emissions sources and drivers behind agency RMBS.  

    Risk Management in Climate-Related Underwriting

    2 mins read Quick Take | Jul 11, 2023 | Cody Dong

    Climate change is exacerbating extreme weather events. What impact has this had on the insurance market and how can insurers assess the impact of hazards and climate scenarios on their portfolios? 

    Labeled-Bond Issuance and Cost of Debt

    Research Report | Jul 7, 2023 | Jakub Malich, Anett Husi

    We explore three reasons why issuers typically issue labeled bonds: financing impact projects, financing their own environmental goals and building rapport with sustainability-oriented stakeholders. Have these issuers also enjoyed lower debt costs? 

    The EU Wants Companies To Care More About Human Rights

    Podcast | Jul 7, 2023 | Leslie Swynghedauw, Aura Toader

    The EU is ironing out the final details of its Corporate Sustainability Due Diligence Directive. We look at what it could mean for how companies identify, mitigate and report on their impacts on human rights. It’s a pioneering step that not only stands to affect European companies, but global ones that earn revenue in the EU market.

    Uncovering Value in Venture-Capital Growth Markets

    6 mins read Blog | Jul 6, 2023 | Padmakar Kulkarni, Yaonan Zhang, Stuart Doole

    Valuations proposed for venture-capital (VC) growth companies, frequently used as benchmarks for publicly listed growth stocks, often attract heated debate. Our analysis can offer fresh insight into the valuation of private VC companies. 

    The Market’s Bad-Breadth Problem

    Podcast | Jul 6, 2023 | Andy Sparks, Thomas Verbraken, Hitendra D Varsani

    Our panel of experts discusses the issues on investors minds and scenarios for what may come next. From inflation “stickiness” to market concentration to central bank actions, how have conditions varied across the globe?

    The Price Is Right? Real Estate Merits More Measures

    6 mins read Blog | Jul 4, 2023 | Tom Leahy

    Assertions that there is one “right” measure of pricing for property markets are wide of the mark. We examine an array of data points which shed light on the downturn in prices and liquidity, focusing on the U.K. office market.  

    Markets in Focus: Looking Beyond the Rate Hikes

    7 mins read Blog | Jul 4, 2023 | Waman Virgaonkar, Hitendra D Varsani, Juan Sampieri

    Investors face “sticky” inflation, equity-market concentration and expectations that U.S. interest rates may be higher for longer. We examine recent global-markets trends to help as asset allocators and portfolio managers determine their next move. 

    Macro Scenarios: Resilient US Economy but Downside Risks Loom

    2 mins read Quick Take | Jul 3, 2023 | Thomas Verbraken, Will Baker

    Investor sentiment has improved since the recent banking turmoil, and a soft landing for the U.S. economy seems possible. But there is geographic fragmentation, with China’s post-lockdown recovery potentially stalling. What could it mean for markets? 

    Are Shareholders Turning Against ESG?

    Podcast | Jun 30, 2023 | Harlan Tufford

    Part of proxy season is over, so we take a look at the landscape of shareholder proposals. And it is well known for to those who are closely watching shareholder proposals that ESG proposals have pretty much plummeted this year vs. last year and previous years – but why is that? Are ESG shareholder proposals losing steam and momentum? Or is that maybe too simple of a reading of the data? We also discuss the new crop of proposals coming out from a set of contrarian shareholder groups that buck the trend of proposals to date.

    Analyst Sentiment as a Factor Consideration

    Research Report | Jun 29, 2023 | Waman Virgaonkar, Abhishek Gupta, Ashish Lodh, Mehdi Alighanbari

    An analyst’s equity opinion encompasses how different interrelated forces may impact the future performance of a company. We sought to define the analyst-sentiment factor, while assessing its relationship with other traditional equity style factors. 

    Measuring Sovereign Bonds’ Climate Risks and Opportunities

    5 mins read Blog | Jun 29, 2023 | Alexander Schober

    Quantifying sovereign bonds’ physical and transition risks may help investors determine the climate resiliency of their portfolios. MSCI Climate Change and Natural Hazards Risk Factor Score may help guide the analysis of these complex risks. 

    Quality Time: Understanding Factor Investing

    Research Report | Jun 28, 2023 | Ashish Lodh, Subhajit Barman

    The past decade's market turbulence, rising inflation and fluctuating rates, has emphasized the importance of high-quality firms. This update to earlier research examines the quality factor’s role in navigating an ever-changing landscape. 

    'Magnificent Seven' Drove the Equity-Market Rally

    2 mins read Quick Take | Jun 28, 2023 | Dinank Chitkara, Rohit Gupta

    Global equities, as measured by the MSCI ACWI Index, roared back through May of 2023. A closer look, however, revealed that just a handful of stocks accounted for more than 70% of the total return. Which stocks punched above their weight? 

    Exploring Factor Investing in Emerging Markets

    5 mins read Blog | Jun 27, 2023 | Anil Rao

    Following up on a recent MSCI survey that revealed uncertainty among investors about the comparative risk-and-return benefits of EM and DM factor investing, we simulated the performance of six common EM factor indexes over the last two decades.  

    The Fed's Pilot — Are Banks Prepared for the Climate Transition?

    5 mins read Blog | Jun 27, 2023 | Carrie Wang, Sita Subramanian

    Regulators around the world are focusing on climate-related scenario analysis to assess banks’ climate-risk exposure and their preparedness for the low-carbon transition. We look at the Fed’s pilot to see how the six biggest U.S. banks stack up. 

    Understanding MSCI Climate Corporate Bond Indexes

    Research Report | Jun 23, 2023 | Rohit Mendiratta, Afsaneh Mastouri

    We offer a comprehensive guide for investors to illustrate how a complex set of financial and climate targets and climate investment objectives can be simultaneously integrated into the construction of indexes as well as portfolios.

    Semiconductors aren't green?!

    Podcast | Jun 23, 2023 | Siyu Liu

    Semiconductors are used in ev-er-y-thing. But semiconductor manufacturers have a high greenhouse gas (GHG) emissions footprint. Since they are so ubiquitous in our economy, will they get a free pass and not be pressured to lower their GHG emissions? Or will the expanding industry be pushed to lower their emissions a la the oil and gas industry? These questions and more are answered on this week's episode of ESG now.

    Tech and AI-Driven Firms Spearheaded Thematic Resurgence

    2 mins read Quick Take | Jun 22, 2023 | Anil Rao, Hitendra D Varsani

    Themes such as robotics and AI, internet innovation, autonomous technologies and the digital economy — all featuring companies in the AI supply chain — have emerged as some of this year's top performers. Following a 2022 that was not kind to such firms, we examine this trend. 

    The Impact of Tax Management on Client-Designed Portfolios

    Research Report | Jun 21, 2023 | Joseph Wickremasinghe, Raina Oberoi

    We analyze a framework for wealth managers considering the impact of managing their clients’ investment preferences alongside different tax-management approaches. 

    Mapping Extreme-Heat Costs for the World’s Largest Cities

    5 mins read Blog | Jun 21, 2023 | Mathew Lee, Anna Gevecke

    As temperatures rise, so do the risks from extreme heat. Using hazard percentiles compared across climate scenarios, we assess the cities and sectors that could be most impacted and the costs they could face. 

    Agency MBS Are Going Social

    5 mins read Blog | Jun 20, 2023 | Yihai Yu, László Ábel Somlai, Ning Qiao

    Fannie Mae and Freddie Mac have begun disclosing socially focused borrower data for all pools of U.S.-agency mortgage-backed securities. How can that data inform MBS investors’ models for prepayment risk? 

    Dispersion in China’s Onshore Equity Market

    2 mins read Quick Take | Jun 19, 2023 | Wei Xu

    Small-cap stocks in the China onshore market historically were much riskier than larger stocks, but as of the end of April, they had similar levels of volatility as the mega- and large-cap segments.  

    Equity Factors: Investor Views and Research Insights

    Research Report | Jun 16, 2023 | Abhishek Gupta

    A survey of institutional investors and wealth managers offers insight on the thinking about equity factors, their role in asset allocation and how traditional factor strategies should evolve to serve an increasingly complex investment landscape.  

    How Making US Mortgages Portable Could Impact MBS Investors

    6 mins read Blog | Jun 14, 2023 | David Zhang, Yihai Yu, Joy Zhang

    U.S. mortgages are generally not portable. While there would be legal hurdles to overcome to reverse the situation, such a move could benefit not only homeowners, but potentially investors in mortgage-backed securities. 

    European Equities: A Door to China’s Reopening?

    Quick Take | Jun 14, 2023 | Saurabh Katiyar

    Could investors participate in China’s reopening other than by directly investing in China shares? We looked at 14 European equity markets and compared their economic exposure to the Chinese economy.

    Understanding the MSCI Climate Action Indexes

    Research Report | Jun 12, 2023 | Kumar Neeraj, Guillermo Cano

    The MSCI Climate Action Indexes offer an additional approach to climate investing by selecting companies in each sector that have reduced or committed to reduce emissions, seem well-positioned to manage climate risk and have generated green revenues. 

    Assessing Science-Based Corporate Climate Target-Setting

    Research Report | Jun 9, 2023 | Kenji Watanabe, Antonios Panagiotopoulos, Siyao He

    Companies are increasingly setting climate targets, but who’s keeping an eye on them? Using key indicators recommended by SBTi and GFANZ, we present a framework to assess whether firms are taking the necessary steps to achieve their targets.

    California Gets Harder To Insure and the NZIA Gets Smaller

    Podcast | Jun 9, 2023 | Sylvain Vanston, Cody Dong

    Under pressure from wildfires and inflation, State Farm has stopped issuing new homeowner policies in California. We get to the bottom of how physical climate hazards may change the future shape of the insurance industry. And then we ask why the Net-Zero Insurance Alliance is a little different from the other alliances that fall under the GFANZ.

    Climate Regs Seek Progress, Not Perfection

    Podcast | Jun 9, 2023 | Simone Ruiz-Vergote, Nakul Jadhav

    In many ways, the EU has led the way on climate regulation in an effort to increase transparency and decision making through disclosure from companies, as well as investors. We discuss what’s expected from the EU sustainable finance package, and its potential impact.

    The Futures of Climate Action Is Now

    6 mins read Blog | Jun 7, 2023 | Dinank Chitkara, Hitendra D Varsani

    Derivatives linked to climate investing are in the early stages of product innovation and investor adoption. We compared the impact, financial risk and opportunity metrics for futures on the MSCI Climate Action Indexes.  

    Impact of Extreme Heat on Utilities in India and Eastern China

    2 mins read Quick Take | Jun 6, 2023 | Siyao He

    Extreme heat patterns pose a significant threat to the utilities sector, particularly in tropical and subtropical regions. We analyzed the MSCI AC Asia Index to see where the risks lay and why.