Repricing for the (Uncertain) Future: Real Estate, Property Value, and Climate
MIT/CRE Meet the Visionaries
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Navigating Climate Risks in Mortgage-Backed Securities
This chapter explores the intricate challenges of modeling mortgage-backed securities (MBS) in light of climate-related risks affecting property values. It examines the misconceptions within the financial markets regarding climate risks, particularly in regions like Florida, and emphasizes the need for updated risk assessment models that account for the long-term impacts of climate change. The discussion further highlights the disparities in risk exposure between commercial and single-family properties, shedding light on the evolving dynamics of real estate in the context of climate data and risk analysis.
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