Musings on Markets

FEBRUARY 8, 2025

A key tool in both endeavors is a hurdle rate a rate of return that you determine as your required return for business and investment decisions. It deepens the acquaintance because you encounter hurdle rates in almost every aspect of finance, and it ruins it, by making these hurdle rates all about equations and models.

Hurdle Rate 72

Hurdle Rate Valuation Corporate Finance Currencies 72

Musings on Markets

AUGUST 15, 2023

As the risk-free rate rises, expected returns on equities will be pushed up, and holding all else constant, stock prices will go down., and the reverse will occur, when risk-free rates drop. Determinants So, why do risk-free rates vary across time and across currencies?

Investments 98

Investments Currencies Treasury Hurdle Rate 98

Musings on Markets

JANUARY 9, 2021

The second is that there are great (and free) sources for macro economic data, ranging from the Federal Reserve (FRED) to the World Bank and I don’t see the point of replicating something that they already do well. Data Update 4 for 2021: The Hurdle Rate Question. Data Update 2 for 2021: The Price of Risk!

Valuation 52

Valuation Currencies Numbers Corporate Finance 52

Musings on Markets

JULY 25, 2023

My suggestion is that for countries where recent political or economic events would lead you to believe that sovereign rating is dated, you should switch to using sovereign CDS spreads. The disadvantage is that they are focused on just default risk, and do not explicitly factor in the other risks that we enumerated in the last section.

Currencies 52

Currencies Hurdle Rate Valuation Marketing 52