To Survive Disasters, You Need Smiles (guest: Steve Hou)
The Market Huddle
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What Is a Bond Term Premium?
Bond term premium or risk premium puts very simply is basically the excess, you know, return that invest bond investors demand. The thing that kind of trips a lot of people up is how does that differ from the yield curve? Because you might just say, look, would we have a two-year trading four and they're demanding an extra 100 basis points to hold it for the extra 28 years,. That's not the same as a term premium.
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