The average market risk premium in the United States decreased slightly to *** percent in 2023. This suggests that investors demand a slightly lower return for investments in that country, in exchange for the risk they are exposed to. This premium has hovered between *** and *** percent since 2011. What causes country-specific risk? Risk to investments come from two main sources. First, inflation causes an asset’s price to decrease in real terms. A 100 U.S. dollar investment with three percent inflation is only worth ** U.S. dollars after one year. Investors are also interested in risks of project failure or non-performing loans. The unique U.S. context Analysts have historically considered the United States Treasury to be risk-free. This view has been shifting, but many advisors continue to use treasury yield rates as a risk-free rate. Given the fact that U.S. government securities are available at a variety of terms, this gives investment managers a range of tools for predicting future market developments.

This statistic illustrates the median market risk premium used for selected countries worldwide in 2024. The median market risk premium used in Turkey was the highest and reached a value of **** percent in that year.

Graph and download economic data for Real Risk Premium (TENEXPCHAREARISPRE) from Jan 1982 to Jul 2025 about premium, real, and USA.

Market risk premiums (MRP) measure the expected return on investment an investor looks to make. For potential investors looking to add to their portfolio, the perfect scenario for a risk-based investment would be a high rate of return with as small a risk as possible. There are three main concepts to MRP’s, including required market risk premiums, historical market risk premiums and expected market risk premiums. United Kingdom shows little return for risk Europe wide, Finland had one of the lowest MRP alongside Poland and Germany. Ukraine had average risk premiums of **** percent in 2024. Having a lower market risk premium may seem bad, but for countries such as the UK and Germany where rates have been consistent for several years, it is because the market is stable as an environment for investment. Risk free rates Risk free rates are closely associated to market risk premiums and measure the rate of return on an investment with no risk. As there is no risk associated, the rate of return is lower than that of an MRP. Average risk free rates across Europe are relatively low.

United States US: Risk Premium on Lending: Lending Rate Minus Treasury Bill Rate data was reported at 3.186 % pa in 2016. This records a decrease from the previous number of 3.201 % pa for 2015. United States US: Risk Premium on Lending: Lending Rate Minus Treasury Bill Rate data is updated yearly, averaging 2.868 % pa from Dec 1960 (Median) to 2016, with 57 observations. The data reached an all-time high of 4.793 % pa in 1981 and a record low of 0.587 % pa in 1965. United States US: Risk Premium on Lending: Lending Rate Minus Treasury Bill Rate data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s United States – Table US.World Bank.WDI: Interest Rates. Risk premium on lending is the interest rate charged by banks on loans to private sector customers minus the 'risk free' treasury bill interest rate at which short-term government securities are issued or traded in the market. In some countries this spread may be negative, indicating that the market considers its best corporate clients to be lower risk than the government. The terms and conditions attached to lending rates differ by country, however, limiting their comparability.; ; International Monetary Fund, International Financial Statistics database.; ;

The average market risk premium in Canada was *** percent in 2024. This means investors demanded an extra *** Canadian dollars on a 100 Canadian dollar investment. This extra cost should compensate for the risk of an investment based in Canada. What causes risk? As far as country-specific factors are concerned, macroeconomic trends can cause risk. For example, the inflation rate in relation to other countries can change the relative value of an investment. Lower inflation in Canada could weaken the Canadian dollar, reducing the value of Canadian assets in terms of another currency, such as the euro or U.S. dollar. The Canadian context As a country, Canada has a fairly high national debt. Some economists point to this as an increased default risk, since debt servicing can become costly. However, most investors agree that Canada, as an advanced economy, is creditworthy and not at risk of defaulting. A better measure is to look at Canada’s risk premium in the context of interest rates from other countries. These deposit rates can be used as a baseline for the market risk premium of other countries, though they do not include all the factors that have been used to calculate this statistic.

The average market risk premium in South Africa increased to *** percent in 2024. Market premium risk represents the difference between return on equities and a risk-free investment, which is normally associated with short-term government bonds. For comparison, the U.S. market premium risk amounted to *** percent in the same year. Risk-free rate Most analysts consider the U.S. treasury rate to be the risk-free rate for the term of their investment, assuming the United States government will not default. Just as consumers in the Unites States get a credit rating, agencies such as Standard & Poor’s rate countries’ credit risks. Using these data, analysts compute the country-specific default risk, which in turn has an influence on the value of risk-free rate. What influences the return on equities? The economic factors such as political stability in a country, inflation rate, level of indebtment, trade deficit and investments have an influence on the activities of companies and their valuation on the stock exchanges. Apart from the economic cycle, the company’s operations itself, which are reflected in the results published in the financial reports, can boost or diminish the stock returns.

The excess bond premium (EBP) is a measure of investor sentiment or risk appetite in the corporate bond market. A credit spread index can be decomposed into two components: a component that captures the systematic movements in default risk of individual firms and a residual component: the excess bond premium that represents variation in the average price of bearing exposure to US corporate credit risk, above and beyond the compensation for expected defaults. The EBP component of corporate bond credit spreads that is not directly attributable to expected default risk provides an effective measure of investor sentiment or risk appetite in the corporate bond market.

Graph and download economic data for Term Premium on a 10 Year Zero Coupon Bond (THREEFYTP10) from 1990-01-02 to 2025-08-01 about term premium, 10-year, bonds, and USA.

Abstract (en): This paper develops a production-based asset pricing model with two types of agents and concentrated ownership of physical capital. A temporary but persistent "distribution shock" causes the income share of capital owners to fluctuate in a procyclical manner, consistent with US data. The concentrated ownership model significantly magnifies the equity risk premium relative to a representative-agent model because the capital owners' consumption is more-strongly linked to volatile dividends from equity. With a steady-state risk aversion coefficient around 4, the model delivers an unleveled equity premium of 3.9 percent relative to short-term bonds and a premium of 1.2 percent relative to long-term bonds. (JEL D31, E13, E25, E32, E44, G12)

Ten-Year Expected Inflation and Real and Inflation Risk Premia is a part of the Inflation Expectations indicator of the Federal Reserve Bank of Cleveland.

We identify Treasury supply shocks using auction data, interpreting changes in futures prices around announcements as shocks to expected supply. We isolate the component of futures price variations pertaining to U.S. Treasury announcements between 1998 and 2020. We study how supply affects financial markets through local projections, using shocks as instruments. We show that increases in Treasury supply cause an upward shift of the yield curve fueled partly by a higher term premium. Stock prices decline, volatility climbs and corporate bond yields increase. The risk premium rises, the equity premium falls, inflation expectations soar and the liquidity premium decreases.

This paper aims to evaluate the effects of the aggregate market volatility components - average volatility and average correlation - on the pricing of portfolios sorted by idiosyncratic volatility, using Brazilian data. The study investigates whether portfolios with high and low idiosyncratic volatility - in relation to the Fama and French model (1996) - have different exposures to innovations in average market volatility, and consequently, different expectations for return. The results are in line with those found for US data, although they portray the Brazilian reality. Decomposition of volatility allows the average volatility component, without the disturbance generated by the average correlation component, to better price the effects of a worsening or an improvement in the investment environment. This result is also identical to that found for US data. Average variance should thus command a risk premium. For US data, this premium is negative. According to Chen and Petkova (2012), the main reason for this negative sign is the high level of investment in research and development recorded by companies with high idiosyncratic volatility. As in Brazil this type of investment is significantly lower than in the US, it was expected that a result with the opposite sign would be found, which is in fact what occurred.

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Premium Cosmetics Market Size 2024-2028

The premium cosmetics market size is forecast to increase by USD 67 billion at a CAGR of 9.75% between 2023 and 2028.

The market is experiencing significant growth, driven primarily by the increasing demand for high-end skincare products. Consumers are becoming more conscious of their health and appearance, leading them to invest in premium cosmetics that offer superior quality and effectiveness. This trend is particularly prominent in developed regions, where consumers have higher disposable income and a greater appreciation for luxury brands. However, there are challenges that market players must navigate to capitalize on this growth. One such challenge is the lack of consumer reach and premium brand penetration in major parts of developing regions. Multichannel marketing strategies, including e-commerce and social media, offer a potential solution to this issue. By expanding their distribution channels and leveraging digital marketing tools, cosmetics companies can reach a wider audience and build brand awareness in these markets. Additionally, partnerships with local distributors and strategic collaborations with influencers can help premium brands establish a foothold in developing regions. Overall, the market presents significant opportunities for growth, particularly for companies that can effectively navigate the challenges of consumer reach and brand penetration in developing regions.

What will be the Size of the Premium Cosmetics Market during the forecast period?

Request Free SampleThe market is experiencing dynamic shifts as consumers prioritize personalized beauty solutions and ethical practices. Indie beauty brands and niche players are gaining traction, offering unique offerings and luxury customer service. Advanced formulas, such as hair repair and skincare technology, are driving innovation, while active ingredients and botanical extracts are at the forefront of data-driven beauty trends. Beauty influencer marketing and content marketing are essential channels for reaching consumers, with luxury beauty events and exclusive services further enhancing the experience. Sustainable packaging and eco-friendly practices are becoming increasingly important, as is the focus on skin hydration and barrier repair. Premium ingredients, including matte finish, signature scents, and high-pigment formulas, continue to be in demand. Beauty subscription services and online communities cater to consumers' evolving preferences, with beauty tourism and luxury retail experiences offering immersive, personalized journeys. Hair care products, color cosmetics, and skincare technology are key areas of investment, as brands strive to deliver advanced formulas and luxury fragrances. Hair growth, skin brightening, and social media marketing are also significant trends shaping the market.

How is this Premium Cosmetics Industry segmented?

The premium cosmetics industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments. ProductSkincare productsFragrancesColor cosmeticsHair care productsOthersDistribution ChannelOfflineOnlineGeographyNorth AmericaUSEuropeGermanyUKMiddle East and AfricaAPACChinaJapanSouth AmericaRest of World (ROW)

By Product Insights

The skincare products segment is estimated to witness significant growth during the forecast period.The premium skincare market is experiencing growth as an increasing number of individuals, both men and women, prioritize better skincare solutions. This segment's expansion is driven by the desire for personalized, scientifically formulated products that cater to individual skin needs. The integration of technology, such as artificial intelligence and virtual try-on, enables personalized recommendations, enhancing the customer experience. Moreover, ethical sourcing, sustainability, and environmental responsibility are becoming essential factors in consumer purchasing decisions. Brands that emphasize cruelty-free cosmetics, vegan options, and eco-friendly packaging are gaining popularity among Gen Z consumers and millennials. The luxury experience is also a significant influencer, with exclusive brands offering personalized consultations and concierge services to cater to their high-value clientele. The global skincare market's expansion is not limited to established markets. Emerging markets, particularly in Asia, are witnessing a surge in demand for premium skincare products. Luxury retailers are capitalizing on this trend by offering exclusive services and collaborating with influencers to reach a broader audience. The clean beauty movement is another trend shaping the market, with consumers seeking products free from harsh chemicals and synthetic ingredients. This shift is leading to the develo

This dataset compiles national-level municipal bond issuance and pricing statistics for the United States, sourced from the Securities Industry and Financial Markets Association (SIFMA). It includes time-series data on municipal bond issuance volumes, average yields, interest rates, and maturity structures, aggregated on a monthly and annual basis. The dataset provides critical macro-financial context for evaluating subnational debt trends, especially in the context of climate adaptation investments and fiscal resilience. In particular, it supports comparative analysis between local climate-related borrowing (e.g., FEMA-backed projects) and national municipal debt trends, serving as a benchmark for assessing changes in risk premiums, cost of capital, and investor behavior. This file was used to calibrate yield spreads in empirical models evaluating the market response to federally co-funded nature-based infrastructure.

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Crop Insurance Market Size 2025-2029

The crop insurance market size is forecast to increase by USD 15.62 billion, at a CAGR of 6.3% between 2024 and 2029. The market is shaped by these drivers the increasing impact of extreme weather conditions due to global warming. Extreme weather conditions, fueled by global warming, pose significant risks to agricultural productivity and, consequently, to the profitability of crop insurance providers. In response, insurers are turning to digital technologies to streamline processes, improve risk assessment, and enhance customer engagement.

Major Market Trends & Insights

  APAC dominated the market and accounted for a 34% during the forecast period.
  The market is expected to grow significantly in North America as well over the forecast period.
  Based upon the Product, the Indemnity-based segment was valued at USD 33.35 billion in 2023
  Based on theType, Crop yielded insurance segment accounted for the largest market revenue share in 2023

Market Size & Forecast

  Market Opportunities: USD 63.96 billion
  Future Opportunities: USD 15.62 billion 
  CAGR : 6.3%
  APAC: Largest market in 2023

However, the market is not without challenges. Moral hazards and adverse selection continue to plague the crop insurance sector, necessitating innovative underwriting strategies and risk management techniques.

Insurers must strike a balance between offering competitive premiums and managing risk effectively to attract and retain customers in this dynamic market. To capitalize on opportunities and navigate challenges, companies must stay abreast of technological advancements and regulatory developments, while maintaining a deep understanding of agricultural trends and customer needs.

What will be the Size of the Crop Insurance Market during the forecast period?

Get Key Insights on Market Forecast (PDF) Request Free Sample

The market continues to evolve, adapting to the dynamic agricultural landscape through innovative products and strategies. Reinsurance strategies play a crucial role in managing risk, with underwriting guidelines ensuring accurate risk assessment. Index insurance products, such as area-yield index insurance, provide coverage based on regional crop performance, while parametric insurance design offers swift payouts following predefined triggers. Fraud detection algorithms and satellite imagery analysis help insurers mitigate potential losses, ensuring fair insurance premium calculation. Crop failure indemnity is determined using drought risk modeling, soil moisture sensors, and harvest loss estimation. Insurance data analytics and actuarial modeling techniques contribute to more accurate risk assessment and transfer mechanisms.
Agricultural insurance schemes employ yield monitoring technology and Precision agriculture data to optimize farm management practices. Parametric insurance designs, such as those based on yield prediction models, provide farmers with protection against unpredictable weather risks. The crop insurance policies of today reflect the ongoing integration of technology, climate change adaptation, and risk mitigation strategies. According to industry reports, The market is projected to grow by 8% annually, driven by advancements in remote sensing data, loss adjustment expenses, and claims processing systems. For instance, a leading agricultural insurer reported a 15% increase in sales due to the implementation of multi-peril insurance and flood risk mapping.
Crop production forecasting, catastrophe modeling, and yield prediction models help insurers assess risk and provide customized coverage. Loss adjustment expenses and claims processing systems ensure efficient handling of claims, while risk transfer mechanisms and payout trigger definitions enable effective risk management. In conclusion, the market is characterized by continuous innovation and adaptation to agricultural risks. The integration of advanced technologies, data analytics, and risk management strategies is transforming the industry, providing farmers with effective risk mitigation solutions.

How is this Crop Insurance Industry segmented?

The crop insurance industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Product

  Indemnity-based
  Index-based


Type

  Crop yielded insurance
  Crop revenue insurance


Distribution Channel

  Direct sales
  Brokers
  Bancassurance


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  APAC

    China
    India
    Japan


  South America

    Argentina
    Brazil


  Rest of World (ROW)

By Product Insights

The indemnity-based segment is estimated to witness significant

Graph and download economic data for Market Yield on U.S. Treasury Securities at 20-Year Constant Maturity, Quoted on an Investment Basis (DGS20) from 1962-01-02 to 2025-08-07 about 20-year, maturity, Treasury, interest rate, interest, rate, and USA.

A little over half of investors believe the risk premium of seniors housing in the United States will increase in the next 12 months, according to a June 2022 survey. In this case, the risk premium refers to the spread between the risk-free 10-Year Treasury and seniors housing cap rates. The average United States risk market premium has hovered between 5.3 and 5.7 percent since 2011.