Risk-Free

(redirected from riskless)
Also found in: Dictionary, Thesaurus.

Risk-Free

Describing a transaction or investment in which the return is known with certainty. The certainty generally comes from a supreme amount of confidence in the issuer of the investment; for example, Treasury securities are considered risk-free investments because the United States government is considered the best possible issuer. Critics contend that there is no such thing as a risk-free investment because, in theory, even the US government could default. However, risk-free investments have such a low level of risk that it may be ignored. Risk-free investments usually have a low rate of return and, as a result, are exposed to inflation risk.
References in periodicals archive ?
The key result of this perfect markets model is that the extent to which increases in the riskless interest rate lower fundamental asset values is an increasing function of the persistence of short-term interest rates and a decreasing function of the risk premium.
The average gain to the severely underfunded pension fund when the firm accepts the riskless project is $14.
According to Gorton, only government can provide riskless collateral.
A way to hedge against currency risk is to look for safe haven, dollar based riskless assets.
How this will play out is unclear, but what is clear is that the ECB, and banking regulators generally, should stop treating claims on sovereign debt as equally riskless.
Bloomberg has place South Korea-based Kia Motors Corporation (KSE: 000270), at the top of its Riskless Return Ranking.
BCI is a neutral counterparty to all trades, acting as a riskless principal.
The ring-fence proposal shares the recognition that continuous provision of deposit taking services is important to the economy, but not the conclusion that the providers of such services must therefore be made virtually riskless.
He added: "One of the great inhibitors of war is the body bag count, but that is undermined by the idea of riskless war.
2) The CPPI strategy is based on a dynamic portfolio allocation on two basic assets: a riskless asset (usually a treasury bill) and a risky asset (a financial stock index for example).
Loss Aversion in Riskless Choice: A Reference Dependent Model.
n+1] which consist of a riskless asset and n risky assets, traded upon continuously.