The FT published a concise letter of our partner Wouter Scheepens. It is a response to Prof Vermaelen who argued in the same paper that certain ethical investors will be compensated in heaven.
Wouter felt the professor’s observations required immediate feedback as he wrote:
"Sir, Professor Theo Vermaelen’s letter (July 20) provides a remarkable insight in today’s capabilities of finance.While he rightly argues that lending money to governments at zero or even negative rates results in smaller alpha on Earth than social bonds do, I’m surprised to learn that he says it will be compensated by higher alpha in heaven. As a finance professor he seems to have a network of unearthly quality. Or maybe he is, as one famous banker before him, "doing God’s work"?"