Anticipating Climate-related Risks

Earlier today, the Biden Administration in the United States released a landmark report declaring unequivocally that climate change creates financial stability risks. A 4-page fact sheet provides perspective on next steps in the United States.

Tomorrow's PolicyScope data readings regarding climate-related risks will naturally register a jump in volume. What did the data look like this morning, before the announcement? Have a look:

Volumes were low related to both the YTD and the October activity levels.

But look closely at the September to October trendline: it was on the rise.

The key leading indicator of public policy volatility occurred back in July....look at the spike in activity during July 2021. The dramatic increase in activity was triggered by the SEC's release of all comment letters responding to an earlier request for feedback.

Public policy professionals know what PolicyScope data users know: spikes in activity levels generate signals about policy activity.

Now look at the volume levels for October in isolation. What drove the spike on 15 October? The document releases from the Financial Stability Board.

The activity in July plus the activity in mid-October provided significant leading indicators of today's move by the Financial Services Oversight Council in the United States.

Geostrategic and regulatory strategists interested in measuring their exposure to this rapidly shifting regulatory policy environment have two choices. They can acquire immediate access to the full PolicyScope dataset via Bloomberg's Enterprise Access Point (BEAP) or they can wait until BCMstrategy, Inc. launches its Bloomberg Terminal App later this year. BEAP customers have the flexibility to mix and match related monetary policy, banking, and even digital currency data to generate confidential signals customized for their portfolios. Bloomberg Terminal App customers will have access to charts and the underlying official sector documents driving the data.

The real question then is whether you are a data-only customer or a data + words customer? In either case, you will receive superior advance notice of public policy and market volatility. If you are not already a BEAP customer, contact us for guidance on how to access PolicyScope data via Bloomberg.