Sentences with phrase «compensated for taking on risk»

Our return expectations across most asset classes are at post-crisis lows, but we believe investors are getting compensated for taking on risk in equities, selected credit / emerging markets (EM) and alternatives.

As investors, we deserve a rate of return that compensates us for taking on risk.

Not exact matches

At the risk of taking sides on this issue, it would appear that Amazon attempted to work out a system of compensation for the publishers, although admittedly the terms of those agreements were confidential; nothing has been mentioned so far about how the authors were to be compensated, either.

In other words, the outperformance is to compensate investors for taking on what's actually a higher level of risk, a reflection of market supply - and - demand dynamics or the result of common decision - making biases.

Although corporate defaults are also on the rise, investors are being compensated for taking incremental risk in credit markets.

Investors need to be compensated for taking on additional risk.

The majority of economists, however, agree that the concept of an equity risk premium is valid: over the long term, markets compensate investors more for taking on the greater risk of investing in stocks.

However, they must also be compensated for the additional amount of risk they're taking on.

So, if your score is in this range, you will pay higher interest rates to lenders to compensate them for the risk they take on when lending to those with lower credit scores.

On the slight chance that you are able to obtain a loan on your own through a private lender without having to go through a credit check, the chances are that you will have to pay a substantially higher rate of interest in order to compensate for the lender taking on what they would consider to be a high risk loaOn the slight chance that you are able to obtain a loan on your own through a private lender without having to go through a credit check, the chances are that you will have to pay a substantially higher rate of interest in order to compensate for the lender taking on what they would consider to be a high risk loaon your own through a private lender without having to go through a credit check, the chances are that you will have to pay a substantially higher rate of interest in order to compensate for the lender taking on what they would consider to be a high risk loaon what they would consider to be a high risk loan.

An investor willing to take on volatility or the potential for losses should be compensated for accepting that risk.

High yield bonds typically offer better return potential than Treasurys or investment grade bonds as a way of compensating investors for taking on greater risks.

But this brings us to one key problem in the world of investing — if we can measure return, and we can measure risk by looking at volatility, then how do we know if we are being compensated for the risk we are taking on?

She said: «As we look at the bond market today — you are certainly getting more compensated for the interest rate risk you are taking on.

Conclusion Although there are many other factors to consider when deciding on any investment strategy (your willingness to take risk would be at the top of the list), the variable maturity approach to fixed income investing is based on the sound investment philosophy that investors should take risks that they are expected to be compensated for in the long term.

Investors expect to be compensated for taking on higher risk.

Beta and its role in CAPM convey the basic idea that investors expect to be compensated for taking on more risk.

Right now, yields for REIT's are about 3 % higher than government bond yields, meaning REIT investors are being well compensated for taking on additional risk.

Companies with debt / interest in excess of that risk suffering: i) a significantly adjusted price for their equity in the event of a takeover — acquirer will refuse to take on debt, or will take on debt but haircut equity to compensate, ii) an eventual rights issue / placing to pay - down debt — this will probably hurt the share price and / or dilute intrinsic value per share significantly, or iii) investors will mark down company severely at some point.

But if it is perceived risk that causes high stock returns, we can not say that investors are being compensated for being willing to take on risk.

Risk - Free Rate of Return (rf) The risk - free rate of return is used to see if you are being properly compensated for the additional risk you are taking on with the asRisk - Free Rate of Return (rf) The risk - free rate of return is used to see if you are being properly compensated for the additional risk you are taking on with the asrisk - free rate of return is used to see if you are being properly compensated for the additional risk you are taking on with the asrisk you are taking on with the asset.

Opportunistic investors moved into junk bonds in late 2008 when, in the face of frozen credit, yields on junk bonds went up to more than 20 % on the back of falling prices and to richly compensate investors for taking up the risk.

Ask yourself, is the return you are being offered high enough to compensate you for the risk you are taking on by putting your money in this investment?

Because these policies are not medically underwritten, the insurer is taking on a much greater amount of risk with its applicants — and because of this, the insured will be required to pay a much higher amount of premium in order to compensate for this risk.

This flat extra compensates the insurance company for the added risk it is taking on by approving the applicant.

This is to compensate for the additional risk the insurance company takes on to cover an older policy holder.

This extra premium is to compensate for the additional risk the insurer is taking on.

Because the applicants on no medical exam life insurance policies are typically those who are considered to be of higher risk, life insurance companies have to compensate for the additional amount of risk that they are taking on.

I expect that «a la carte» services will become more common in future and sellers will pick up many of the costs presently paid for by Realtors, but also expect commissions would have to drop to compensate sellers for taking on some of our risk.

Risk - based pricing means compensating the lender for taking the additional risk on a borrower with a lower credit score (the average FICO score for a conventional loan was 753 in 2016, according to Ellie MRisk - based pricing means compensating the lender for taking the additional risk on a borrower with a lower credit score (the average FICO score for a conventional loan was 753 in 2016, according to Ellie Mrisk on a borrower with a lower credit score (the average FICO score for a conventional loan was 753 in 2016, according to Ellie Mae).