Remove 2024 Remove Marketability Remove Risk-free Rate
article thumbnail

Sovereign Ratings, Default Risk and Markets: The Moody's Downgrade Aftermath!

Musings on Markets

I was on a family vacation in August 2011 when I received an email from a journalist asking me what I thought about the S&P ratings downgrade for the US. Moodys, Standard and Poors and Fitchs have been rating corporate bond offerings since the early part of the twentieth century. for investment grade (Aaa to Baa1) sovereign debt.

article thumbnail

IVSC Valuation Webinar Series 2024, Sponsored by Kroll

IVSC

Now in its fifth year, the IVSC is pleased to present the 2024 Valuation Webinar Series, sponsored by Kroll, running from 13-25 June 2024. The effects of COVID-19 fiscal spending are still being felt, with many governments experiencing high budget deficits, placing further upward pressure on interest rates. TBC Awaiting details.

Banking 130
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Trending Sources

article thumbnail

Market Bipolarity: Exuberance versus Exhaustion!

Musings on Markets

That recovery notwithstanding, uncertainties about inflation and the economy remained unresolved, and those uncertainties became part of the market story in the third quarter of 2023. The Markets in the Third Quarter Coming off a year of rising rates in 2022, interest rates have continued to command center stage in 2023.

article thumbnail

Data Update 1 for 2024: The data speaks, but what does it say?

Musings on Markets

Thus, looking at only the companies in the S&P 500 may give you more reliable data, with fewer missing observations, but your results will reflect what large market cap companies in any sector or industry do, rather than what is typical for that industry.

Dividends 106
article thumbnail

Data Update 5 for 2024: Profitability - The End Game for Business?

Musings on Markets

In my last three posts, I looked at the macro (equity risk premiums, default spreads, risk free rates) and micro (company risk measures) that feed into the expected returns we demand on investments, and argued that these expected returns become hurdle rates for businesses, in the form of costs of equity and capital.

Equity 82
article thumbnail

Data Update 3 for 2024: Interest Rates in 2023 - A Rule-breaking Year!

Musings on Markets

As we start 2024, the interest rate prognosticators who misread the bond markets so badly in 2023 are back to making their 2024 forecasts, and they show no evidence of having learned any lessons from the last year. In fact, treasury bill rates consistently rise ahead of the Fed's actions over the two years.

article thumbnail

Fed up with Fed Talk? Fact-checking Central Banking Fairy Tales!

Musings on Markets

The big story on Wednesday, September 18, was that the Federal Reserve’s open market committee finally got around to “cutting rates”, and doing so by more than expected. The market seemed to initially be disappointed in the action, dropping after the Fed’s announcement on Wednesday, but it did climb on Thursday.

Banking 125