Sentences with phrase «premium over government bonds»

To offset those potential losses, investors are demanding a 5.5 percentage point premium over government bonds to buy these high - risk bonds.

Given that those bonds yield a 1.5 percentage point premium over government bonds (which have a default risk close to zero), a corporate bond investor is likely to be left with a one percentage point advantage over government bonds after accounting for the risk of loss.

Not exact matches

What about the argument that the equity - risk premium (the premium that investors demand over risk - free assets such as government bonds) has fallen close to zero because of greater economic stability?

CFOs, meanwhile, estimate the premium to be 5.6 % over T - bills (U.S. government debt obligations with maturities of less than one year) and 3.8 % over T - bonds (maturities of greater than ten years).

So, unless something truly catastrophic happens (like the US government defaulting on its bonds) or people in the company break the regulations (which would invovle all kinds of serious crimes and require complicity or complete failure of the auditors), your premiums and the contractual obligation to you would still be there, and would be absorbed by a different insurance company that takes over the defunct company's business.