tag:blogger.com,1999:blog-706772597530050449.post7055399845819083331..comments2024-02-19T12:04:56.080-05:00Comments on Reading the Markets: Emons, The End of the Risk-Free RateBrenda Jubinhttp://www.blogger.com/profile/02587551531260863509noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-706772597530050449.post-82401407281238343582013-07-06T13:39:28.722-04:002013-07-06T13:39:28.722-04:00Dear Mrs. Jubin:
Thank you for reading my book a...Dear Mrs. Jubin: <br /><br />Thank you for reading my book and spending time on reviewing it. I appreciate you point out spelling issues. This is something I have spent diligent time on with the editor. <br /><br />I like to make a few points to your critique of the book. Indeed the content of the book has a market technical nature. Although there is always room for improvement, the fact that I am Dutch and English is not my native language, doesn't mean my writing is "incomprehensible" as you say. Editing is an art, and you should know as an experienced reviewer that it is not uncommon typos or spelling issues often show up in books. Although my style of writing is technical, others whom have read the book and have little knowledge of bonds, didn't seem to have an issue following the content. <br /><br />Many of the topics I describe are actively discussed in financial markets. These may be for the "retail investor" perhaps somewhat over and above. However, for example a balance of payments crisis, structural unemployment, or restructuring of debt have a major influence on financial markets. This book aims at educating investors what those topics mean in practice. <br /><br />Unfortunately you did not address the second part of the book which is a more practical approach to the thesis of the end of the risk free rate. For example I discuss at length the implications for stocks and bonds, and take the reader on a tour across many asset classes. The reader gets a good insight in the return and risks of those assets. In addition, I 'quantify' the embedded risk in the risk free rate in chapter 4 by introducing a basic framework. Such framework could be useful for investors to better gauge what the true risks are of the "risk free rate". <br /><br />This book aims at discussing ideas around the concept of "risk free" in markets. The risk free rate is an assumption in models, pricing of securities and even in quantitative easing policies. I don't make investment recommendations but I strongly argue there is no "alternative risk free rate". Often in the media it has been said that with Treasury yields on the rise, the 'safer' alternative could be equities. Obviously that is not true.<br /><br />Sincerely,<br /><br />Ben Emons <br />Author of The End of the Risk Free Rate Anonymoushttps://www.blogger.com/profile/05642240109011981890noreply@blogger.com