Re:U.S. economy shrank at a 1.4% annual rate in the first qu...
by RC_ITR on Thursday April 28, 2022 @12:13PM
(#31194354)
> Yes, all assets are priced relative to the risk free rate.
Based on your name I bet you work in research at a hedge fund.
I hate to break it to you but ask most people who are price setters what their discount is and they’ll say 10% regardless of 10Y treasury yields (since you know, TINA)
As a result securities are increasingly priced on liquidity more than cash flows and that’s a function of the credit cycle way more than it’s a function of productivity.
It’s a weird post modern approach to the economy, but hey that’s showbiz baby.
Based on your name I bet you work in research at a hedge fund.
I hate to break it to you but ask most people who are price setters what their discount is and they’ll say 10% regardless of 10Y treasury yields (since you know, TINA)
As a result securities are increasingly priced on liquidity more than cash flows and that’s a function of the credit cycle way more than it’s a function of productivity.
It’s a weird post modern approach to the economy, but hey that’s showbiz baby.