For decades, the interest rate on American debt has been known as the "risk-free rate", because a US default was as close to impossible as anyone in financial markets could imagine, and all other bonds were priced relative to America's. ❋ Unknown (2011)
The pension payments are essentially risk-free - the government is in many cases required by law to make the - so they argue that the appropriate discount rate is the so-called risk-free rate, the rate on Treasury bonds, considered one of the safest investments, which is currently between 4 and 5 percent. ❋ Unknown (2011)
Other economists say using a so-called risk-free rate would result in an overfunding of retirement systems because their often stock-heavy investments are likely to earn more than Treasurys. ❋ Jeannette Neumann (2011)
While governments grapple with ballooning debt and banks manage exposure to ailing sovereign assets, once classified as risk-free, so corporations await the dearth of funding that will inevitably result from the latest bout of global economic uncertainty. ❋ Javier Espinoza (2011)
The fundamental benchmark interest rates in modern financial markets are the so-called risk-free rates on government bonds. ❋ Simon Johnson (2011)
Moreover, continued European sovereign debt risks have helped strengthen U.S. dollars and further lower the so called risk-free rate of return provided by U.S. Treasuries and agency-backed RMBSs.
Q: S&P downgraded my supposedly risk-free Treasurys. ❋ Ben Levisohn (2011)
Since we all watched the disaster unfold day after day, the blowup of the Deepwater Horizon oil rig was supposed to have snapped the country and industry out of what Michael Bromwich -- the man put in charge of offshore drilling after the spill -- last week called a collective trance'' that allowed the industry, government and the public to believe that drilling was risk-free. ❋ Alison Fitzgerald (2011)
The gap between three-month bank-lending rates and expected risk-free interest rates, known as the Euribor/OIS spread, has widened to 0.54 percentage point, according to ICAP. ❋ Richard Barley (2011)
Corporate-bond spreads also have widened to three percentage points over risk-free rates, the highest since July 2009, 0.1 point wider this week and 0.8 point wider in August so far. ❋ Richard Barley (2011)
What is worse is that all collateralized trading is risk-free beyond the collateralization threshold, something that AIG and its counterparties exploited to the max. ❋ Unknown (2011)
"I would still like to keep that as liquid as possible and as risk-free as possible, but I'm not really happy with the available options," he says. ❋ Ruth Simon (2012)
But Spanish and Italian bond spreads versus risk-free bonds may prove the best indicator of whether a repeat of 2008 is in store. ❋ Richard Barley (2011)
On the one hand, if even the debt of the U.S. government is no longer considered risk-free, it makes perfect sense for investors to increase their holdings of tangible assets whose value is a lot less dependent on the creditworthiness of any government or financial institution. ❋ Andrea Hotter (2011)
Still, the auction isn't risk-free, said Tetsuya Miura , chief market analyst at Mizuho Securities. ❋ Takashi Mochizuki (2011)
The decision also has cast doubts over the long-held belief that U.S. Treasurys are essentially risk-free assets and sparked a renewed search for a haven, which is boosting gold. ❋ Tatyana Shumsky (2011)
For 70 years, U.S. Treasury debt has been synonymous with "risk-free" assets, a classification that helped Treasurys become the most liquid and widely held government debt in the world. ❋ Tatyana Shumsky (2011)
It would be dishonest of me to tell you that any attempt to manipulate genetic code is risk-free. ❋ Dayton Ward (2011)
The $3 trillion estimate assumes that funds will earn only the "risk-free" rate: the return that comes from investing in U.S. ❋ Matthew Dalton (2011)
