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Some evidence supports the intriguing conjecture that P/Es in the U.S. market may decline in times of both significantly lower, as well as significantly higher, real interest rates. The P/E response pattern would then resemble a tent that angles downward at both ends. For pension liabilities defined in real terms, very low real rates would then lead to a clifflike falloff in the funding ratio from the decline in equity valuations combined with surging liability costs. This article explores the risk implications of such a low-rate scenario and the equity valuations that could give rise to such a tent pattern.
Call Number | Location | Available |
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FAJ6301 | PSB lt.dasar - Pascasarjana | 1 |
Penerbit | Virginia: CFA Institute 2007 |
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Edisi | Vol. 63, No. 1, Jan. - Feb., 2007 |
Subjek | Price-to-Earnings Ratio (P/E) |
ISBN/ISSN | 0015198X |
Klasifikasi | NONE |
Deskripsi Fisik | 13 p. |
Info Detail Spesifik | Financial Analysts Journal |
Other Version/Related | Tidak tersedia versi lain |
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