Sentences with phrase «duration risk premium»

These funds can not «roll down the curve», or capture the duration risk premium as average maturities decline with time.

These adjustments were driven by a reduction in the overall equity and credit risk premia and a largely unchanged duration risk premium.

Not exact matches

This is since the equity duration is based on a derivative of the dividend discount model that uses long term interest rates plus an equity risk premium, but these models also rely on growth and inflation.

So a risk premium is added to longer duration CDs, bonds, and loans.

If you kept the insurance for the entire duration, the insurance company carried the risk for the entire duration and therefore, the premium is considered fully earned.

When calculating premiums for a term life insurance policy, life insurance carriers consider several risk factors, as well as, the amount of life insurance and duration of your term life policy.

The maturity age is higher for term plans with a relatively higher premium rate as they offer to cover risks for a longer duration.

Risk coverage is for the entire duration of life and the sum assured is paid after the death of the insured Limited Payment Whole Life Insurance: where premiums are paid for a limited and shorter period of time as chosen by the insured or after his death, whichever happens earlier.

The rule of thumb is that the younger a person is, the lower their perceived risk is and the longer the possible duration of premium payment; hence lower premium amounts.

We could summarize that for the duration of a loan, fixed mortgage rates are determined on the following basis: cost of capital + administration costs and / or mortgage negotiations + risk premium (in the risk of the borrower defaulting on the mortgage) + the bank's desired profit = cost of the mortgage for the borrower.