When we sell a security, we are doing so with the understanding that we can re-invest the proceeds in a way that will maintain our nominal returns. The logic behind this is fairly simple, in that we wouldn’t sell the security if we didn’t feel as though there was a long-term benefit … [Read more...]
Reinvestment Risk
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Reinvestment Risk Risk inherent in reinvestment expectations that future proceeds or earnings may need to be reinvested only at the lower rates prevailing then. Random Finance Terms for the Letter S Regulatory Surplus Reinvestment Rate Reinvestment Risk Re-Invoicing … [Read more...]
