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Anonymous Posted 13 years ago
Vocabulary
The price of risk
Hi.
"By way of answer Haldane recalls his meetings in the City in 2005 and 2006, when even the financiers around the table admitted that something was terribly unbalanced in credit flows but felt unable to doing anything about it themselves: "We'd say things like: 'The price of risk looks a bit low; the quantity of risk taken looks a bit high.' And they'd say: 'Yeah, you're right.'" [From The Independent.]
Does the clause "'The price of risk looks a bit low;" mean that bankers who take the risk will pay a low price in the sense of having a little personal responsibility for taking the risk?
Thank you.
"By way of answer Haldane recalls his meetings in the City in 2005 and 2006, when even the financiers around the table admitted that something was terribly unbalanced in credit flows but felt unable to doing anything about it themselves: "We'd say things like: 'The price of risk looks a bit low; the quantity of risk taken looks a bit high.' And they'd say: 'Yeah, you're right.'" [From The Independent.]
Does the clause "'The price of risk looks a bit low;" mean that bankers who take the risk will pay a low price in the sense of having a little personal responsibility for taking the risk?
Thank you.
Top answer
I think that "price of risk" is probably used here as a technical finance term, probably referring to the extra potential reward demanded by investors for investing in risky assets. com/Market+Price+of+Risk
- I think that "price of risk" is probably used here as a technical finance term, probably referring to the extra potential reward demanded by investors for investing in risky assets.
- com/Market+Price+of+Risk
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2 Answers
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I think that "price of risk" is probably used here as a technical finance term, probably referring to the extra potential reward demanded by investors for investing in risky assets.
http://financial-dictionary.thefreedictionary.com/Market+Price+of+Risk
http://financial-dictionary.thefreedictionary.com/Market+Price+of+Risk
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