Musings on Markets

AUGUST 15, 2023

With this investment, you face price risk , since even though you know what you will receive as a coupon or cash flow in future periods, since the present value of these cash flows, will change as rates change. and how much to hold in investments with guaranteed returns over their time horizon (cash, treasury bill and treasury bonds).

Investments 83

Investments Currencies Treasury Hurdle Rate 83

Musings on Markets

JANUARY 9, 2021

The conventional approach to measuring this premium is looking at past returns on stocks and treasuries (or something close to riskfree) and measuring the difference in historical returns and I report the updated levels (through 2020) for historical premiums for stocks over treasuries in this dataset.

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 riskfree rate in Egyptian pounds is 14.38%.

Hurdle Rate 52

Hurdle Rate Currencies Valuation Marketing 52