Musings on Markets

MAY 24, 2021

Risk Premiums and Failure Risk : By itself, inflation has no direct effect on equity risk premiums, but it remains true that higher levels of inflation are associated with more uncertainty about future inflation. Consequently, as inflation increases, equity risk premiums will tend to increase.

Treasury 55

Treasury Start-ups Risk Premium Price to Book 55

Musings on Markets

JANUARY 17, 2025

Computing the returns in real terms , by taking out inflation in each year from that year's returns, and recomputing the equity risk premiums: Download historical data Note that the equity risk premiums move only slightly, because inflation finds its way into both stock and treasury returns.

Equity 127

Equity Risk Premium Treasury Start-ups 127

Global Finance

OCTOBER 29, 2024

We’ve seen dramatic improvements with companies addressing maturities due in 2025, but also a lot of progress on maturities due out to 2026. The risk looks a lot better, and all those reasons support the soft-landing thesis. There are certain sectors that we think are offering better risk/reward.

Start-ups 98

Start-ups Finance Equity Private Equity Firm 98