Tony Berrada

Tony Berrada is Professor of Finance at the University of Geneva. Professor Berrada is a regular speaker at leading finance conferences and workshops worldwide. He teaches executive education courses on portfolio management.

Expertise

Professor Berrada is studying the incentive structure and pricing of sustainability-linked bonds. Empirical results show that when overpricing occurs on the primary market for such bonds it is followed by falling prices on the secondary market as well as by positive stock price reactions. These price reactions are consistent with wealth transfers from bondholders to shareholders. Further analysis reveals a strong and positive relationship between mispricing and the bond-issuing firms' ESG rating. From a policy perspective, it would be beneficial to have greater transparency in the bond prospectus and certification process by requiring that firms also disclose the cost of implementing the ESG infrastructure required to reach their objectives.

Expertise Fields

• Financial Markets
• Information and Market Efficiency
• Portfolio Management and Asset Classes
  • Asset Pricing
  • Behavioral Finance and Neurofinance
  • Options and Other Derivatives
  • Portfolio Management