Tag Archives: yield spreads

Are German Bonds Now The Risk-Free Rate?

bond spreads

As all of the Capital Asset Pricing Model (CAPM) fans out there know, the value representing the ‘risk-free’ rate is a critical data point! But for those who may be unfamiliar with CAPM, it’s ‘a model that describes the relationship between risk and expected return and that is used in the pricing of risky securities.’ […]

Dodd-Frank And CMBS – Lenders Will Soon Be Required To ‘Eat Their Own Cooking’!

CMBS,securitization,Dodd-Frank

What’s better for a lender than underwriting a commercial mortgage loan, packaging it with other loans and then selling it to investors? Any inherent risk of loan default, after the time it may take to sell the security off course, would be passed off to the investor that buys it. What we saw during the financial […]

Are The EU PIIGS About To Start Squealing?

investing,risk and reward,EU PIIGS

Summary: As the migrant crisis in Europe worsens serious steps to address it are being considered. One proposal is for passports to be required in order to cross from one EU country to another. Would such a drastic move spell the beginning of the end for the Eurozone as a viable entity? And if so […]

Observations about the capital markets and commercial real estate

These are some great observations about the current condition the commercial real estate market as well as the capital markets that provide the financing from Rick Jones at Crunched Credit! Structural complexity is returning to the marketplace in the search for yield.  Many will say that’s bad.  I think that’s Luddite thinking. There continues an […]

EU sovereign debt: Is it really different this time?

Or will it be another one of history’s examples of bulls and bears making money and of PIIGS being slaughtered? In other words is the liquidity angst being felt at one of Portugal’s largest banks an isolated event or a sign that trouble may loom on the horizon for the EU as a whole? That was […]