3 Ways to Quantify Risk in Today’s Murky Markets

Credit Indicators One way to calculate market risk is through bond yields. As risk and return are directly correlated when a bond’s yield rises, it implies the risk of owning it has increased. The main vehicle for measuring risk through yield is the US 10-year Treasury. The 10-year is the bellwether for global bonds as it’s considered a “risk-free” instrument. Since hitting all-time lows in July 2016, its yield has shot up 50%.
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