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Data Update 6 for 2025: From Macro to Micro - The Hurdle Rate Question!

Musings on Markets

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.

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In Search of Safe Havens: The Trust Deficit and Risk-free Investments!

Musings on Markets

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.

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Data Update 1 for 2021: A (Data) Look Back at a Most Forgettable Year (2020)!

Musings on Markets

I also report estimates of the default spreads based upon current yields on bonds in different ratings classes and the current riskfree rate. Since my interests lie in corporate finance and valuation, the statistics that I compute are numbers that I will find useful when doing a corporate financial analysis or valuation of a company.