Sentences with phrase «risk premium»

(ii) a return to equity risk premiums of old, which were based on the last 100 yrs?

As long as the expected risk premium for equities remains attractive relative to bonds, our model will allocate to equities to seek the returns necessary for optimal participant outcomes.

(i) a fair bit of risk premium in equity markets?

I really think focus needs to move away from point forecasts for royalty revenues to a density forecast, or alternatively, include some sort of risk premium in the budget.

All of this makes unexpected inflation less likely, which makes the need for a higher risk premium for holding cash less likely as well.

This indicates a market risk premium of 5.4 %, based on these parameters.

The historic equity risk premium over long periods of time is around 4 percent.

The lower risk premiums of the smaller markets make them a safer investment.

Meanwhile the mortgage risk premium rose 4 basis points, with volatility, over the same period.

Therefore, investors act as agents to transmit changing policy expectations and changing inflation risk premiums into the real economy by adjusting their risk exposures across the yield curve.

However, the methods used to calculate the variance risk premium are complex.

The overall concept of the risk / return relationship is that when risk increases, the expected return on the asset should also increase as a result an expected risk premium.

Companies should incorporate a lower equity risk premium into their pension fund assumptions.

In a market with razor thin risk premiums, any increase in risk aversion can lead to spectacular price declines.

In effect, investors have priced stocks not only on the expectation of many more years of zero interest rates, but also without any material risk premium at all.

The study estimates that new nuclear plants carry a heavy risk premium because of uncertain construction costs.

Market crashes are invariably about risk premiums, not long - term cash flows.

Our long - term forecasts are based on our assessment of current valuation measures, economic growth and inflation prospects, as well as historical risk premiums.

Over the entire century, high - grade corporate bonds offered an incremental 0.5 % of compounded return as a default risk premium.

An insurance risk premium will be charged for the death benefit.

Therefore, if the required risk premium decreases while the potential return remains the same or dips lower, investors might feel stocks have become too risky and will put their money elsewhere.

For example, as liquidity decreases, the desired risk premium reflected in the price rises, pushing the return down by an average of 22 %.

Corporate debt yields include a corporate risk premium over treasury yields.

A maturity risk premium applied to a longer - term investment reflects a higher perceived risk of default.

As we have discussed in prior reviews, critical to our framework is the risk - adjusted equity risk premium relative to opportunities in the bond market.

Based on availability of inputs for month - end risk premium estimates, return calculations are based on closing prices for the first trading day of the next month.

Now risk premiums are back, and we're getting back to financing fundamentals in seniors housing and, in fact, across the real estate industry.

That said, despite solid historical and projected performance, a significant risk premium exists for seniors housing investments.

The limited risk premium is in addition to the usual opening commission or spread that the client pays.

Why should we expect a larger equity risk premium from low - risk portfolios than from high - risk portfolios, especially if we're now paying a large premium for the former?

Meanwhile the mortgage risk premium rose 4 basis points, with volatility, over the same period.

The problem for the market is this creates uncertainty, causing risk premiums to be wider than they otherwise would be.

Low and expanding risk premiums are at the root of nearly every abrupt market loss.

A regular foreign investor might well want some sort of extra risk premium, as is often the case with national oil companies.

You could invest in individual factors, an approach that would offer the opportunity to capture potential risk premiums.

Instead of inflation, the drivers of real estate prices are interest rates, economic growth, market fundamentals, and other risk premiums.

Any onset of increased investor caution elevates risk premiums and, as a consequence, lowers asset values and promotes the liquidation of the debt that supported higher prices.

That said, a significant risk premium exists for seniors housing investments, despite strong historical and projected performance.

On average, stock and bond investments have paid investment risk premiums historically.

The rationale is that borrowers with lower credit scores carry a higher risk of default and must therefore pay a considerable risk premium.

And what car owner would want to risk a premium hike or a lawsuit if an accident occurred?

If project A is far riskier than project B, there should be a clear risk premium that could accrue to the firm if project A is enacted.

Moreover, the behavior of interest rates and corporate risk premiums currently suggest that high junk yields are not value, but warnings about important defaults ahead.

The market itself thought so, according to the forward risk premium.

Equity risk premium refers to the excess return that investing in the stock market provides over a risk - free rate.

Market risk premium describes the relationship between returns from an equity market portfolio and treasury bond yields.

But for me it does make sense to have some exposure to different risk premiums in a broadly diversified portfolio.