A risk premium is the return over and above the risk-free rate (generally thought of as the return on U.S. Treasuries) that investors demand to compensate them for the risk of owning an asset. Because ...

There's generally no such thing as a risk-free investment, and that's especially holds true when it comes to corporate bonds. Companies issue these debt instruments to help pay for things such as ...

J.B. Maverick is an active trader, commodity futures broker, and stock market analyst 17+ years of experience, in addition to 10+ years of experience as a finance writer and book editor. Andy Smith is ...

The market risk premium is an essential part of investment planning. Here’s what you need to know. There are safe things you can do with your money. Now, when it comes to finance, “safe” is a relative ...

Maturity risk premiums increase with bond term length, influencing interest rates. Investors require higher premiums for longer-term bonds due to increased risk. Calculate maturity risk premium by ...

Elvis Picardo is a regular contributor to Investopedia and has 25+ years of experience as a portfolio manager with diverse capital markets experience. Robert Kelly is managing director of XTS Energy ...

Rachael has a Bachelor’s degree in mass media from Wilson College, Mumbai and a Master’s degree in English from Pune University. Have you ever stopped to ask a fundamental question of investing: why ...

The size and direction of the risk premium signify secular shifts in capital markets returns and asset-allocation decisions. Since early 2024, as U.S. equity markets rallied to new highs and bond ...

We’re all familiar with a “premium” grade of gasoline. It’s supposed to contain more of a type of octane (C 8 H 18) than lower grades of gas. That’s why it costs about a third more than “regular.” But ...

This article was written by Niall Smith, Senior Sustainable Investments Quantitative Researcher at Bloomberg. Markets appear to be pricing physical climate risk into the cost of capital for firms. Our ...