The End of the Risk-Free Rate: Investing When Structural Forces Change Government Debt

5 avg rating
( 2 ratings by GoodReads )
 
9780071819527: The End of the Risk-Free Rate: Investing When Structural Forces Change Government Debt

Ben Emons explains why government debt is no longer "risk free"--and how you can seek alternatives in order to invest your money accordingly
A timely alert to the fundamental changes taking place in today's global economic and financial systems. The book discusses why there is no longer a true risk free rate, how this will impact risk premiums, financial and real asset valuations, what could be the future alternatives to the risk free rate and what to look for when investing.

"synopsis" may belong to another edition of this title.

From the Author:

The End of The Risk Free Rate discusses how to look at the investing world in a different way. The "risk free rate" is a feature of a fiat currency system where a reference or benchmark is used to value financial assets.

The 2008 financial crisis and subsequent European sovereign crisis of 2010-2012 has shown what was once assumed to be a stable investment like a T-bill or government bond has become a volatile instrument with credit characteristics. This may have changed the way risk premiums should be evaluated.

When looking at the risk free rate, it has components that were not thought of prior to the 2008 crisis. Restructuring, social-political developments, private sector involvement, financial repression, and interest rate volatility are elements of a "new risk free rate". Investors should be aware of these elements when evaluating corporate, municipal, mortgage backed, high yield bonds as well as equities. The risk premium earned is perhaps at a different level and this book shows with practical examples a quantification.

Another implication is there are no "alternative" risk free rates. Often said that as government bonds are less appealing due to low returns, there are alternatives like corporate bonds or emerging market sovereign debt perceived to be "safer". This book demonstrates with extensive analysis that is not the case and how investors should use this information when judging investments.

The End of the Risk Free Rate does not mean the end of investing in bonds. The book makes neither the case that bonds are no longer suitable investments. On the contrary, The End of the Risk Free Rate provides a framework and practical analysis investors can arm themselves with to better understand the complexity of the investment universe that is functioning no longer on the premise of something that is "risk free".  

I hope you will enjoy reading my second book.

Sincerely

Ben Emons
Author of "The Financial Domino Effect" and "The End of the Risk Free Rate"

From the Inside Flap:

Our financial system is built upon two premises. It is a fiat currency system that is comprised of free floating currencies backed by a paper standard, the reserve currency. The dominant factor is the US dollar at which many currencies are valued against. The other feature is financial assets valued of a benchmark, a reference rate dubbed as the "risk free rate". Whether one looks at finance such as the capital asset pricing model (CAPM) or at investment grade securities, in general a "risk free rate" is an important assumption. The financial crisis of 2008 may have changed the way the global financial system operated. For one, the direct influence on asset prices by global central banks has been unprecedented. Another reason is that it has long been assumed there was a "risk-free instrument", like a Treasury bill or a government bond. They were viewed as boring instruments with a low return because they are public goods. The onset of the financial crisis saw large guarantees by governments of their financial systems, and as economies fell into a deep recession, automatic stabilizers as well as additional fiscal stimulus increased governments' total debt. What was normally considered as a steady, boring investment became a volatile instrument with credit risk characteristics.

"About this title" may belong to another edition of this title.

Top Search Results from the AbeBooks Marketplace

1.

Emons, Ben
Published by McGraw-Hill Education
ISBN 10: 0071819525 ISBN 13: 9780071819527
New Hardcover Quantity Available: 1
Seller
Qwestbooks COM LLC
(Bensalem, PA, U.S.A.)
Rating
[?]

Book Description McGraw-Hill Education. Hardcover. Book Condition: New. 0071819525. Bookseller Inventory # Z0071819525ZN

More Information About This Seller | Ask Bookseller a Question

Buy New
US$ 9.12
Convert Currency

Add to Basket

Shipping: FREE
Within U.S.A.
Destination, Rates & Speeds

2.

Emons, Ben
Published by McGraw-Hill Education
ISBN 10: 0071819525 ISBN 13: 9780071819527
New Hardcover Quantity Available: 1
Seller
Vital Products COM LLC
(southampton, PA, U.S.A.)
Rating
[?]

Book Description McGraw-Hill Education. Hardcover. Book Condition: New. 0071819525. Bookseller Inventory # Z0071819525ZN

More Information About This Seller | Ask Bookseller a Question

Buy New
US$ 9.18
Convert Currency

Add to Basket

Shipping: FREE
Within U.S.A.
Destination, Rates & Speeds

3.

Emons, Ben
Published by McGraw-Hill Education 2013-06-18 (2013)
ISBN 10: 0071819525 ISBN 13: 9780071819527
New Hardcover Quantity Available: 5
Seller
Ebooksweb COM LLC
(Bensalem, PA, U.S.A.)
Rating
[?]

Book Description McGraw-Hill Education 2013-06-18, 2013. Hardcover. Book Condition: New. 1. 0071819525. Bookseller Inventory # Z0071819525ZN

More Information About This Seller | Ask Bookseller a Question

Buy New
US$ 9.54
Convert Currency

Add to Basket

Shipping: FREE
Within U.S.A.
Destination, Rates & Speeds

4.

Emons, Ben
ISBN 10: 0071819525 ISBN 13: 9780071819527
New Quantity Available: 5
Seller
GreatBookPrices
(Columbia, MD, U.S.A.)
Rating
[?]

Book Description Book Condition: New. Bookseller Inventory # 19102860-n

More Information About This Seller | Ask Bookseller a Question

Buy New
US$ 8.75
Convert Currency

Add to Basket

Shipping: US$ 2.64
Within U.S.A.
Destination, Rates & Speeds

5.

Emons, Ben
Published by McGraw-Hill Education
ISBN 10: 0071819525 ISBN 13: 9780071819527
New Hardcover Quantity Available: 2
Seller
Purple Turtle Products
(Lakeville, MA, U.S.A.)
Rating
[?]

Book Description McGraw-Hill Education. Hardcover. Book Condition: New. 0071819525 Never read - may have minor wear on cover from being on a retail shelf. Bookseller Inventory # 2016011591

More Information About This Seller | Ask Bookseller a Question

Buy New
US$ 9.19
Convert Currency

Add to Basket

Shipping: US$ 3.95
Within U.S.A.
Destination, Rates & Speeds

6.

Emons, Ben
Published by Mcgraw Hill Publishers
ISBN 10: 0071819525 ISBN 13: 9780071819527
New Quantity Available: > 20
Seller
INDOO
(Avenel, NJ, U.S.A.)
Rating
[?]

Book Description Mcgraw Hill Publishers. Book Condition: New. Brand New. Bookseller Inventory # 0071819525

More Information About This Seller | Ask Bookseller a Question

Buy New
US$ 13.25
Convert Currency

Add to Basket

Shipping: US$ 3.50
Within U.S.A.
Destination, Rates & Speeds

7.

Emons, Ben
ISBN 10: 0071819525 ISBN 13: 9780071819527
New Quantity Available: 1
Seller
Castle Rock
(Pittsford, NY, U.S.A.)
Rating
[?]

Book Description Book Condition: Brand New. Book Condition: Brand New. Bookseller Inventory # 97800718195271.0

More Information About This Seller | Ask Bookseller a Question

Buy New
US$ 23.90
Convert Currency

Add to Basket

Shipping: US$ 3.99
Within U.S.A.
Destination, Rates & Speeds

8.

Emons, Ben
Published by McGraw-Hill Education - Europe, United States (2013)
ISBN 10: 0071819525 ISBN 13: 9780071819527
New Hardcover Quantity Available: 10
Seller
The Book Depository US
(London, United Kingdom)
Rating
[?]

Book Description McGraw-Hill Education - Europe, United States, 2013. Hardback. Book Condition: New. 235 x 158 mm. Language: English . Brand New Book. This is a new financial strategy for a new financial world. As an investor, you ve probably taken advantage of the risk-free rates in the postcrash economy by putting your money into bonds, stocks, commodities, and currencies. With the rise of government debt across the globe, you can no longer rely on the notion of safe to perform asexpected. You need to adapt your investing strategy to a new financial reality. Filled with expert tips, this step-by-step guide walks you through all of your investment options, showing you how each will be affected by the end of the risk-freerate. You ll learn: what you should know before buying bonds and Treasury bills; how to recognize and invest in the strongest emerging markets; how to choose between government and corporate options; what the debt-to-GDP ratio means for you and your investments; and how to evaluate foreign markets in the rapidly changing global economy. With the author s guidance, you ll discover that you don t need to stop investing in government bonds and otherpopular options - you just need to invest differently. You ll learn about combining liquid means, ETFs, mutual funds, and individual securities. You ll gain insights into market depth, liquidity, and capital flows - and how they change depending on regulations, costs, and other factors. You ll see how the debt situations in countries like Mexico and Italy can have an immediate impact on investors around the world. You ll find new ways to thinkabout investing in a changing economic landscape. Most importantly, you ll learn how to assess risk in different markets. An essential guide in these fascinating times, The End of the Risk-Free Rate marks a new beginning for today s investor. Bookseller Inventory # AA39780071819527

More Information About This Seller | Ask Bookseller a Question

Buy New
US$ 32.99
Convert Currency

Add to Basket

Shipping: FREE
From United Kingdom to U.S.A.
Destination, Rates & Speeds

9.

Emons, Ben
Published by McGraw-Hill Education - Europe, United States (2013)
ISBN 10: 0071819525 ISBN 13: 9780071819527
New Hardcover Quantity Available: 10
Seller
The Book Depository
(London, United Kingdom)
Rating
[?]

Book Description McGraw-Hill Education - Europe, United States, 2013. Hardback. Book Condition: New. 235 x 158 mm. Language: English . Brand New Book. This is a new financial strategy for a new financial world. As an investor, you ve probably taken advantage of the risk-free rates in the postcrash economy by putting your money into bonds, stocks, commodities, and currencies. With the rise of government debt across the globe, you can no longer rely on the notion of safe to perform asexpected. You need to adapt your investing strategy to a new financial reality. Filled with expert tips, this step-by-step guide walks you through all of your investment options, showing you how each will be affected by the end of the risk-freerate. You ll learn: what you should know before buying bonds and Treasury bills; how to recognize and invest in the strongest emerging markets; how to choose between government and corporate options; what the debt-to-GDP ratio means for you and your investments; and how to evaluate foreign markets in the rapidly changing global economy. With the author s guidance, you ll discover that you don t need to stop investing in government bonds and otherpopular options - you just need to invest differently. You ll learn about combining liquid means, ETFs, mutual funds, and individual securities. You ll gain insights into market depth, liquidity, and capital flows - and how they change depending on regulations, costs, and other factors. You ll see how the debt situations in countries like Mexico and Italy can have an immediate impact on investors around the world. You ll find new ways to thinkabout investing in a changing economic landscape. Most importantly, you ll learn how to assess risk in different markets. An essential guide in these fascinating times, The End of the Risk-Free Rate marks a new beginning for today s investor. Bookseller Inventory # AA39780071819527

More Information About This Seller | Ask Bookseller a Question

Buy New
US$ 33.96
Convert Currency

Add to Basket

Shipping: FREE
From United Kingdom to U.S.A.
Destination, Rates & Speeds

10.

Emons, Ben
Published by McGraw-Hill Education (2013)
ISBN 10: 0071819525 ISBN 13: 9780071819527
New Quantity Available: 3
Seller
PBShop
(Wood Dale, IL, U.S.A.)
Rating
[?]

Book Description McGraw-Hill Education, 2013. HRD. Book Condition: New. New Book.Shipped from US within 10 to 14 business days. Established seller since 2000. Bookseller Inventory # IB-9780071819527

More Information About This Seller | Ask Bookseller a Question

Buy New
US$ 30.56
Convert Currency

Add to Basket

Shipping: US$ 3.99
Within U.S.A.
Destination, Rates & Speeds

There are more copies of this book

View all search results for this book