Bunds have underperformed versus risk-free rates at an accelerated pace amid structural headwinds from supply and the ECB’s quantitative tightening. In money markets, the pricing of German collateral ...
In traditional finance, the "risk-free rate,” the interest rate an investor can expect to earn on an investment that carries zero risk, serves as a fundamental benchmark for all investment decisions.
Learn how risk-based pricing in credit markets affects interest rates and loan terms based on creditworthiness, and understand regulatory requirements like the 2011 rule.