2022 Marketability Risk-free Rate 
Harvard Corporate Governance
JANUARY 24, 2023
2022 brought a halt to a nearly unabated 12-year run of booming credit markets and “lower for longer” interest rates. This post is based on a Wachtell Lipton memorandum by Mr. Sobolewski, Mr. Pessin, Mr. Simwinga, Joshua Feltman , Michael Benn , and Emily Johnson. Average yields for single-B bonds rose from under 4.7%
Musings on Markets
JULY 13, 2022
Country Risk: Default Risk and Ratings For investors, the most direct measures of country risk come from measures of their capacity to default on their borrowings. Country Risk: Equity Risk For equity investors, the price of risk is captured by the equity risk premium, and equity risk premiums will vary across countries.
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Musings on Markets
AUGUST 15, 2023
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?
Musings on Markets
OCTOBER 4, 2023
We started the year with significant uncertainty about whether the surge in inflation seen in 2022 would persist as well as about whether the economy was headed into a recession. The Markets in the Third Quarter Coming off a year of rising rates in 2022, interest rates have continued to command center stage in 2023.
Musings on Markets
FEBRUARY 8, 2022
In the first few weeks of 2022, we have had repeated reminders from the market that risk never goes away for good, even in the most buoyant markets, and that when it returns, investors still seem to be surprised that it is there.
Musings on Markets
JANUARY 27, 2022
By the end of 2021, it was clear that this bout of inflation was not as transient a phenomenon as some had made it out to be, and the big question leading in 2022, for investors and markets, is how inflation will play out during the year, and beyond, and the consequences for stocks, bonds and currencies.
Musings on Markets
JANUARY 30, 2023
If 2022 was an unsettling year for equities, as I noted in my second data post, it was an even more tumultuous year for the bond market. The rise in rates transmitted to corporate bond market rates, with a concurrent rise in default spreads exacerbating the damage to investors.
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