Also, the Greek precedence indicates that EU bond holders can loose 75 % of their value, and can not be regarded
as riskless assets.
PG and JNJ, the yields may be under 3.2 % but they too are
as riskless or low risk as you can get.
Not exact matches
Riskless transaction: A transaction by a broker / dealer who, upon a customer's request, buys a security for its own account first, then sells it to the customer
as a dealer, and charges a markup.
Why the Federal government would assume all the credit risk of a mortgage and then buy it at a healthy premium
as a «
riskless» asset is an interesting question.
Monetary finance isn't
riskless, Mr. Turner says, but the alternatives may be worse: stagnation and deflation, or perpetually low interest rates that fuel dangerous bubbles: «The money finance option should not be excluded
as taboo.»
Here, the forward price represents the expected future value of the underlying discounted at the risk free rate —
as any deviation from the theoretical price will afford investors a
riskless profit opportunity and should be arbitraged away.
Now, it's not a
riskless bond portfolio,
as you can tell by the yield.
They were holding minimum reserves because a guy named Geithner at the New York Federal Reserve ruled that since the values of the underlying assets were increasing, they could consider the loans practically «
riskless»
as long
as they carried default insurance.