Musings on Markets

AUGUST 15, 2023

With this investment, you face price risk , since even though you know what you will receive as a coupon or cash flow in future periods, since the present value of these cash flows, will change as rates change. and how much to hold in investments with guaranteed returns over their time horizon (cash, treasury bill and treasury bonds).

Investments 80

Investments Currencies Treasury Hurdle Rate 80

Musings on Markets

JANUARY 9, 2021

The second is that there are great (and free) sources for macro economic data, ranging from the Federal Reserve (FRED) to the World Bank and I don’t see the point of replicating something that they already do well. Data Update 4 for 2021: The Hurdle Rate Question. Data Update 2 for 2021: The Price of Risk!

Valuation 52

Valuation Currencies Numbers Corporate Finance 52

Musings on Markets

JANUARY 20, 2021

Put simply they look at a long time period in the past (50 years or even 100 years) and look at the premium that stocks earned over a risk free investment (treasury bills or bonds); that historical risk premium then gets used as a measure of the current equity risk premium.

Treasury 52

Treasury Investments Valuation Hurdle Rate 52

Barry Ritholtz

DECEMBER 26, 2023

And economic indicators, like the unemployment rate or the claims data, and you know, we actually did some scenario analysis around that recently, just talking about, Hey, what happens if the employment rate rises versus falls? You, you mentioned the fed raising rates. I mean, I, I haven’t done that much work.

Marketing 61

Marketing Leadership Finance Investments 61