Over 2000 books to read online or download to your PC, Kindle, Android, iPad, iPhone and any electronic book reader
Find an eBook by title or author...


 Electronic books  Economics and Business  Basic financial concepts 
----------------------
Deflation Risk
M. Fleckenstein - F. A. Longstaff - H. Lustig
Published in 2013

We study the nature of deflation risk by extracting the objective distribution of inflation from the market prices of inflation swaps and options.
We find that the market expects inflation to average about 2.5 percent over the next 30 years. Despite this, the market places substantial probability weight on deflation scenarios in which prices decline by more than 10 to 20 percent over extended horizons. We find that the market prices the economic tail risk of deflation very similarly to other types of tail risks such as catastrophic insurance losses. In contrast, inflation tail risk has only a relatively small premium. Deflation risk is also significantly linked to measures of financial tail risk such as swap spreads, corporate credit spreads, and the pricing of super senior tranches. These results indicate that systemic financial risk and deflation risk are closely related.
(From authors)

eBook License: Copyrighted (Personal Use Only)

Free PDF eBook - 529 Kb - 61 pages
Welcome to eBooks for All! On this site you can read online for free and legally digital books (eBooks) or download them directly to your PC, eBook reader, Tablet or smartphone.
Last 10 added electronic books
Acceptance and Commitment Therapy For Depression in Veterans 
An Overview Of Methods For Treating Selectivity In Big Data Sources 
The Attraction of Company Online Communities 
The Future Is Now: Science For Achieving Sustainable Development 
Human Rights In The Age Of Artificial Intelligence 
Content Marketing Workbook 
A Guide to Improving Your SEO 
Self-Care Planning Guide For Individuals 
Mindfulness-Based Stress Reduction - Authorized Curriculum Guide 
The Murder on the Links