so a default risk premium is built into the price of bonds. Calculating a bond's default risk premium The default risk premium is essentially the anticipated return on a bond minus the return a ...

The S&P 500 risk premium -- the forward earnings yield minus the 10-year Treasury yield-- is now nearly zero. "Such dismal equity risk-reward prospects have only been seen once in the last quarter ...

The equity risk premium currently sits at about 1.59 percentage points, the lowest level it has been since October 2007, and well below its average difference of about 3.5 percentage points since ...