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Marchel Alexandrovich
Saltmarsh Economics
Marchel Alexandrovich is a prominent Climate Economist and Partner at Saltmarsh Economics, based in London. His expertise primarily revolves around the economic implications of climate change, particularly focusing on its impact on the European Central Bank (ECB) and inflation dynamics. Since joining Saltmarsh Economics in February 2022, Alexandrovich has worked on assessing how climate-related risks affect sovereign economic stability and financial markets.134
Professional Background::
- Prior to his current role, Alexandrovich served as a Managing Director and Senior Economist at Jefferies, a global investment banking firm, where he gained significant experience in European economic analysis.15
- He has been actively involved in discussions regarding the intersection of climate change and economic policy, contributing insights at various conferences, including the ACI Slovenia Financial Market Conference.12
Current Focus:: At Saltmarsh Economics, Alexandrovich emphasizes the integration of climate risk into economic frameworks, particularly how these factors influence investor behavior and policy decisions. His work aims to bridge the gap between environmental sustainability and economic viability, providing valuable perspectives for stakeholders in finance and policy-making.13
For more information about his professional journey and contributions, you can view his LinkedIn profile here .2
Highlights
One cannot credibly compare France today to the Greece or Italy of 2009-2014. While its private and public debt levels are high relative the the rest of the euro area, the imbalances in the French economy are small and would not normally tip an economy into a recession. Moreover, the household sector is running a significant financial surplus, which helps to finance the deficits of the public sector and of non-financial corporations.
However, it is also obvious that the upcoming parliamentary elections have the potential to send shockwaves through the markets. Which raises the question of how the European Central Bank would react.
The ECB's toolkit is less flexible now than it was a couple of years ago given its shrinking balance sheet. However, it can find creative ways to intervene in the markets.
In our latest note we examine the options at the ECB's disposal, the lessons from the BoE and the role that could be played by the French banks.
https://lnkd.in/eUZ_47kc
With each passing quarter it is becoming more obvious that global GHG emissions are not falling sufficiently quickly to put them on a trajectory to limit global warming to 1.5⁰C. As a result, the long term effects of climate change and the increasing severity and frequency of climate events are coming much more into focus.
How should investors take account of these factors when managing their sovereign bond portfolios? As highlighted in a recent Network for Greening the Financial System (NGFS) guide on climate-related disclosure, when it comes to central banks, defining policy objectives, let alone executing investment strategies, poses a significant challenge.
However, private sector asset managers have more flexibility, and for those looking for ideas, our own Saltmarsh Economic Climate Index (SECI) is a useful tool to help bring together a wide range of data to score and rank counties on their ability to absorb climate related risks.
