Definition of «risk assets»

Risk assets refer to investments that have higher potential returns but also come with a greater degree of risk. These types of assets are typically associated with capital markets, such as stocks, bonds, and real estate. They carry more uncertainty than other asset classes like cash or government securities, which makes them more volatile in the short term. However, over longer periods, they have historically provided higher returns compared to safer investments. Risk assets are often held by institutional and individual investors who are willing to take on greater risk in pursuit of higher potential rewards.

Sentences with «risk assets»

  • As the Dollar fell, traders bought up stocks as demand for higher risk assets picked up. (forexfloor.com)
  • Our analysis of cycles and markets suggests that the combination of weaker growth and higher inflation is not good for risk assets such as equities. (schroders.com)
  • With 10,000 baby boomers retiring every day, annuities are now a legitimate transfer of risk asset class with sales reaching $ 250 billion annually. (blog.annuity123.com)
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