Scarcity of safe assets drives momentum for alternatively weighted risk premia indexes

Index providers and fund managers are seeing demand from investors for strategy indexes that focus on risk, as returns on risk-free assets fall far below historical norms. Magda Ali reports

cogs-drawing

The scarcity of safe assets is likely to reflect equity risk-premiums, which have risen during the past year, and low risk-free bond yields, which have become negative in inflation-adjusted terms, warned Barclays Capital at the presentation of its latest annual Equity gilt study in London in February. As investors continue to scrutinise risky stocks, alternatively weighted risk premium indexes designed to outperform market-cap indexes by investing in the least volatile stocks have been

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here