Faculty | IE Business School

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Paolo Porchia's research mainly concerns equilibrium asset pricing, optimal portfolio choice, and fixed income.  His past work has analyzed: a) optimal investment strategies when the correlation between asset returns is random, b) the equilibrium implications for the term structure of interest rates of agents' aversion to model ambiguity, and, more recently, c) the equilibrium properties of the cross-section of returns arising when assets are characterized by 'distress events' (that is, persistent times of marked cash-flow imbalance).

Prior to joining IE in 2010, Paolo has been Assistant Professor at the University of St. Gallen, where he has taught Master and PhD courses in portfolio choice theory, fixed-income and asset pricing.  He has received a PhD in Finance from the University of Lugano, and a Bachelor´s degree in Economics from the University of Rome, 'La Sapienza'.


Academic Background

  • PhD in Finance, University of Lugano, Switzerland, 2005.
  • BA in Economics, University of Rome 'La Sapienza', 2000.


Academic Experience

  • Assistant Professor of Finance, IE, Madrid, 2010 to present.
  • Assistant Professor of Economics, University of St. Gallen, Switzerland, 2006-2010.
  • Post-Doctoral Research Fellow, University of St. Gallen, Switzerland, 2005-2006

Latest publications

  • Correlation Risk and Optimal Portfolio Choice

    Buraschi, A.N., Porchia, P., Trojani, F.A. Journal of Finance, Vol. 65(1): 393-420, 2009
  • Ambiguity Aversion and the Term Structure of Interest Rates

    Porchia, P., Trojani, F.A., Gagliardini, P.A. Review of Financial Studies, Vol. 22(10): 4157-4188, 2008