Equity Events Risk-free Rate 
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
JANUARY 21, 2023
While there are many events during 2022, some political and some economic, that one can point to as the reason for poor stock returns, it is undeniable that inflation was the driving force behind the market correction. Actual Returns Your returns on equities come in one of two forms. Stocks: The What? at the start of that year.
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Brian DeChesare
FEBRUARY 28, 2024
While everyone seems to know about equity research and trading stocks, fixed income research gets far less attention. Equity Research vs. Fixed Income Research Common Myths What Do You Do as a Fixed Income Research Analyst or Associate? a credit rating vs. an investment recommendation). closer to the work at a quant fund ).
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.
Musings on Markets
FEBRUARY 8, 2022
Geographical Risk Beta measure the macro risk exposure of the businesses that a company operates in, but they are blunt instruments, incapable of capturing either country risk (from operating in the riskiest parts of the world) or discrete risk (from default, nationalization or other events that truncate a company's life).
ThomsonReuters
JUNE 15, 2021
Use of Special purpose acquisition (SPAC) vehicles have spiked over the past year because private equity and venture capital firms have excess cash they need to put to work, accounting practitioners said mid-June. These standards require companies to assess whether the warrants should be equity or liability classified.
Musings on Markets
SEPTEMBER 20, 2024
Overall, though, and this is my view, this was about as anticlimactic as a climactic event gets, akin to watching an elephant in labor deliver a mouse. The answer is recognizing that market-set rates ultimately are composed of two elements: an expected inflation rate and an expected real interest rate , reflecting real economic growth.
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