Remove 2021 Remove Marketability Remove Risk-free Rate
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Financing Year in Review: The Tide Turns

Harvard Corporate Governance

2022 brought a halt to a nearly unabated 12-year run of booming credit markets and “lower for longer” interest rates. high-yield bond issuances were down approximately three quarters year-over-year – the lowest volume since 2008 – while newly minted leveraged loans fell nearly two-thirds from 2021 levels. over the same period.

Finance 227
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Data Update 2 for 2022: US Stocks kept winning in 2021, but…

Musings on Markets

Leading into 2021, the big questions facing investors were about how quickly economies would recover from COVID, with the assumption that the virus would fade during the year, and the pressures that the resulting growth would put on inflation. The year that was.

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In Search of Safe Havens: The Trust Deficit and Risk-free Investments!

Musings on Markets

In every introductory finance class, you begin with the notion of a risk-free investment, and the rate on that investment becomes the base on which you build, to get to expected returns on risky assets and investments. What is a risk free investment? Why does the risk-free rate matter?

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Data Update 3: Inflation and its Ripple Effects!

Musings on Markets

Inflation numbers have been coming in high now, for more than a year, but for much of the early part of 2021, bankers, investors and politicians seemed to be either in denial or casually dismissive of its potential for damage. While the implied inflation in bond rates is low, investors seem to be anticipating higher inflation.

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Data Update 2 for 2021: The Price of Risk!

Musings on Markets

Investors are constantly in search of a single metric that will tell them whether a market is under or over valued, and consequently whether they should buying or selling holdings in that market. Note that nothing that I have said so far is premised on modern portfolio theory, or any academic view of risk premiums.

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Data Update 4 for 2021: The Hurdle Rate Question!

Musings on Markets

Capital Constrained Clearing Rate : The notion that any investment that earns more than what other investments of equivalent risk are delivering is a good one, but it is built on the presumption that businesses have the capital to take all good investments.

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Country Risk: A 2022 Mid-year Update!

Musings on Markets

lived under full democracy, in 2021, with large differences across regions. I know that there are some of you, who distrust ratings agencies, arguing that they have regional and other biases and/or that they do not adjust ratings in a timely fashion.