Musings on Markets
FEBRUARY 11, 2023
In this section, I will begin measures of country default risk, including sovereign ratings and CDS spreads, before moving to more expansive measures of country risk before concluding with measures of equity risk premiums for countries, a pre-requisite for estimating the values of companies with operations in those countries.
ThomsonReuters
MAY 6, 2021
The adjustment added to the risk-free rate to arrive at the risk-adjusted rate is often referred to as the “risk premium.” The risk premium reflects that market participants require compensation for taking on uncertainty. The risk premium may incorporate factors such as credit risk or market illiquidity.
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Musings on Markets
AUGUST 15, 2023
Expected returns for Risky Investments : The risk-free rate becomes the base on which you build to estimate expected returns on all other investments. For instance, if you read my last post on equity risk premiums , I described the equity risk premium as the additional return you would demand, over and above the risk free rate.
Musings on Markets
MARCH 19, 2022
The overriding message in all of this data is that Russia/Ukraine war has unleashed fears in the bond market, and once unleashed that fear has pushed up worries about default and default risk premia across the board.
Chris Mercer
MARCH 7, 2024
Provisions in the organizational and governance documents that affect the rights, restrictions, marketability and liquidity of the subject interest. Defined expiration or termination dates contained in the governing documents, or other external factors, that may precipitate a foreseeable liquidation or sale of the underlying entity.
Equilest
JULY 10, 2023
Assessing and quantifying these risks helps determine an appropriate discount rate or risk premium when calculating the company's value. Conducting Due Diligence Thorough due diligence is vital in the valuation process.
Equilest
JULY 10, 2023
Assessing and quantifying these risks helps determine an appropriate discount rate or risk premium when calculating the company's value. Conducting Due Diligence Thorough due diligence is essential in the valuation process.
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