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? What is a risk free investment?

Risk-free Rate 98

Risk-free Rate Treasury Risk Premium Start-ups 98

Brian DeChesare

AUGUST 31, 2022

Traditionally, if someone asked the “ sales & trading vs. investment banking ” question, the response was easy: “Do banking unless you really, really like trading and could not imagine doing anything else.”. The time to expiration or maturity is further away – because there’s more time for the stock price to go up.

Banking 89

Banking Risk-free Rate Equity Start-ups 89

Valutico

FEBRUARY 27, 2024

More importantly, we’ll dig deeper into how discount rates can influence investment choices and how they’re used to figure out a company’s worth. What is a discount rate? The “discount rate” does two main things. For central banks like the Federal Reserve, it helps control the economy.

Discounted Cash Flow 52

Discounted Cash Flow Risk Premium Risk-free Rate Beta 52

Brian DeChesare

FEBRUARY 28, 2024

For the right person, though, fixed income research can be even better than equity research, whether you’re at a bank, an asset management firm, a hedge fund, or a credit rating agency: Table of Contents: What is Fixed Income Research? Rates: Is the “risk-free rate” truly risk-free ?

Equity 59

Equity Banking Start-ups Finance 59

Musings on Markets

MAY 24, 2021

Implicit in this definition are two key components of inflation. The first is that to define purchasing power, you have to start with a definition of what you are purchasing, and this detail, as we will see, can lead to differences in inflation measured over a given period, across measures/services.

Treasury 55

Treasury Start-ups Risk Premium Price to Book 55

Musings on Markets

JULY 25, 2023

The second is that what comprises default in the sovereign CDS market may not coincide with investor definitions of default , though there are approaches that can be used to back out the likelihood of default from a CDS value.

Risk Premium 52

Risk Premium Equity Start-ups Risk-free Rate 52

Musings on Markets

JANUARY 28, 2025

It was an interesting year for interest rates in the United States, one in which we got more evidence on the limited power that central banks have to alter the trajectory of market interest rates. We started 2024 with the consensus wisdom that rates would drop during the year, driven by expectations of rate cuts from the Fed.

Banking 69

Banking Treasury Risk Premium Start-ups 69