"The optimism created by these countries' suddenly finding that they could have low interest rates without their currencies collapsing, which had been their previous experience, led people to think that there was a genuine rate-of-return revolution going on, " he says.
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Typically mutual funds is where we are looking at quite substantially right now for really one reason, and those tend to trend better with a lot less risk, so you know you can have market-like rate of return on high-yield-bond mutual funds with historically a third of the downside risk of the markets.
Many legit money managers sold Bernie-like low-volatility constructs to investors, promising a rate of return at least twice T-Bills.
With the majority of CDOs being backed by mortgages, the principal-only tranche has a known future cash flow, but at a variable rate of return, while the interest-only tranche has both an unknown cash flow and an unknown rate of return on that cash flow.
The market, already ahead 10 percent year-to-date, could reach a mid-teens rate of return in 2013.
And because they have zero expected return, they are inferior to the rate of risk-free return.
T-bills yield a negative real rate of return now and 10-year Treasuries yielding 4% don't light my fire.
It is a different story with their competitors in the long-haul railroad sector, where all companies have produced a positive three-month rate of return and there has been a 14.4% collective price rise in the last three months.
As with a remainder trust, the IRS takes a snapshot of the deal when it's created, assumes the assets will earn a set rate of return--now just 7.2% --and taxes the assets being passed to heirs based on that.
The rate of return on American index-linked government securities (also a real return) is roughly 4%.
This eases the cash flow of a strapped business, and the time value of money makes such investment yield a higher (after-tax) rate of return.
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This rapid rate of return--made possible by high valuations at time of exit--is hard to come by in more mature or heavily regulated industries.
The June funded ratio, which measures assets to liabilities. is only 74% for CalPERS even using a high-rate of return assumption for its investments.
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Rather, the long-term rate of return on stocks is determined by the ratio of share price to dividends.
Lydall ( LDL) lowered its expected long-term rate of return on plan assets to 7.75% for 2012, from a prior 8%.
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Despite all the naysayers, the market shows a mid-teens rate of return.
The banks profit from investing in solar in two ways: They get tax advantages (the investment tax credit) as well as a single-digit rate of return.
As Forbes first reported in February, Harvard's fully invested and overly illiquid endowment, coupled with the use of interest-rate and total-return swaps, caused Mendillo to scramble for cash last fall.
The rate of return on these multibillion-dollar portfolios is nothing to write home about.
This cultural transformation was marked by a change in the growth rate of return on assets from -8.7% to 14.1% over 11 years.
He told MPs the plans would lead to a "more predictable and transparent regime" that would "ensure a long-term, predictable rate of return".
The dispersion is somewhat larger when measuring average annual returns (annualized return, recall, is the compounded or geometric rate of return during a multiple-year time period).
The greater the spread between the high-interest debt and the rate of return on investment, the greater the financial advantage for paying off the debt first.
Shares of the aging discounter are essentially unchanged from where they were five years ago, meaning that an investor who bought the stock in July 2002 has made an approximate 1% return, the rate of Wal-Mart's dividend yield.
Go out to 10-year Treasuries and the inflation adjusted rate of return currently is a flat zero.
Private-equity firms typically seek an annual rate of return of at least 15%.
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We are also excited by the growth of impact investing, which aims to address social or environmental challenges while generating financial returns that can range from a return of principal to market-rate financial returns.
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In a world where annual inflation is running at a 3% rate (actually more if you think for a moment about your rising healthcare and educational costs), there is an overwhelming demand for a security whose rate of return is a negative real (inflation-adjusted) rate of 3%.
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