Global Economy Meeting and Risk-free asset: Difference between pages

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The Global Economy Meeting (GEM) is the principal discussion forum of central bank Governors during the regular [[Bank for International Settlements]] (BIS) bimonthly meetings.
''Investment management - risk appetite - flight to quality - rates of return - risk-free rate of return - risk assets.''


For practical investment management and portfolio management purposes, a risk-free asset is considered to be one on which the expected rate of investment return is so likely to be achieved, that it can be treated as near-enough risk free for the purpose.


The two main roles of the Meeting are to:
The usual example is short-dated debt obligations of a low-risk domestic central government.


- monitor and assess developments in the world economy and the global financial system.  
For example in the United States, short-dated obligations of the US Treasury.


- provide guidance to, and receive reports from, the Basel-based central bank committees: the [[Committee on the Global Financial System]] (CGFS), [[Committee on Payments and Market Infrastructures]] (CPMI) (formerly called the Committee on Payment and Settlement Systems (CPSS)) and the [[Markets Committee]].


In this context, all assets that are not risk-free assets, are classed as ''risk assets''.


The GEM comprises the Governors of 30 BIS member central banks in major advanced and emerging market economies that account for about four fifths of global GDP and meetings are observed by Governors from several other central banks.
The exact boundary between risk assets and risk-free assets can vary, depending on the purpose of the classification.




==See also==
== See also ==
* [[Central bank]]
* [[Benchmark]]
* [[EM]]
* [[Capital asset pricing model]]
* [[Gross domestic product]]
* [[Credit spread ]]
* [[Expected rate of return]]
* [[Flight to quality]]
* [[Gilts]]
* [[Interest rate risk]]
* [[Investment management]]
* [[LIBOR]]
* [[Market risk premium]]
* [[Portfolio]]
* [[Rate of return]]
* [[RFR]]
* [[Risk appetite]]
* [[Risk asset]]
* [[Risk-free rate of return]]
* [[Risk-free rates]]
* [[Risk-off]]
* [[Risk-off asset]]
* [[Risk-on]]
* [[Treasury]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:Financial_products_and_markets]]
[[Category:Risk_frameworks]]

Latest revision as of 05:49, 10 February 2024

Investment management - risk appetite - flight to quality - rates of return - risk-free rate of return - risk assets.

For practical investment management and portfolio management purposes, a risk-free asset is considered to be one on which the expected rate of investment return is so likely to be achieved, that it can be treated as near-enough risk free for the purpose.

The usual example is short-dated debt obligations of a low-risk domestic central government.

For example in the United States, short-dated obligations of the US Treasury.


In this context, all assets that are not risk-free assets, are classed as risk assets.

The exact boundary between risk assets and risk-free assets can vary, depending on the purpose of the classification.


See also

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