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.

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.

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

With LSEG's StarMine Equity Risk Premium (ERP) model, gain transparent, high-quality ERP estimates for all major equity markets around the globe.

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 ***** main concepts to MRP’s, including required market risk premiums, historical market risk premiums and expected market risk premiums. In 2023, average market risk premiums in Turkey increased from the previous year. Turkey has second-highest MRP in Europe In 2023, Turkey had the third-highest average market risk premium rates in Europe. That year, right above Turkey, Russia and Ukraine recorded the highest MRP rates in Europe. At the other end of the scale was Netherlands and Switzerland, whose market risk premiums averaged almost quarter of those seen in Ukraine. 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 were relatively low in 2023, with exceptions. The risk-free rate of investment in Turkey in 2023 was **** percent.

Split into three categories (required, historical, expected), market risk premiums measure the rate of return investors expect on an investment over the risk that investment holds. In Europe, average market risk premiums (MRP) sit between **** and *** percent. Greece sees hike in MRP Although it has a relatively high market risk premium, Greece has seen its rates significantly decrease since 2020. Greece also saw a ****** than average return rate on risk free investments. The same correlation can be seen with Europe’s less risky countries for investment. With Germany seeing some of the ****** market risk premiums and risk free returns in Europe. Required, historical and expected Separating the three types of market risk premiums is straightforward. Required MRP’s differ between investors, as approaches to investment change and measure the rate of return needed for an investment to be made. Expected premiums look at the rate of return, and what they are calculated to come out as, while historical MRP’s look back over a period at the average rate of return that investors previously got in the past.

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.

Risk premium on lending (lending rate minus treasury bill rate, %) in Brazil was reported at 29.05 % in 2024, according to the World Bank collection of development indicators, compiled from officially recognized sources. Brazil - Risk premium on lending (prime rate minus treasury bill rate, %) - actual values, historical data, forecasts and projections were sourced from the World Bank on July of 2025.

Average market risk premiums (MRP’s) in Sweden have fluctuated between 2011 and 2024. As of 2024, the average market risk premium in Sweden amounted to *** percent. Compared to other countries in Europe, Sweden’s average MRP was relatively low. Similar countries included the Netherlands and Norway, among others. Required, historical and expected Separating the three types of market risk premiums is straightforward. Required MRP’s differ between investors, as approaches to investment change, and measure the rate of return needed for an investment to be made. Expected premiums look at the rate of return, and what they are calculated to come out as, while historical MRP’s look back over a period at the average rate of return that investors previously got in the past. 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 (with some exceptions) were relatively low in 2022. As of 2023, The average risk-free rate of investment in Sweden was roughly *** percent, the highest ratio recorded since 2015.

This replication folder recreates all tables and figures in RFS article "The Market Risk Premium for Unsecured Consumer Credit Risk." For instructions, see the file "Instructions_ReplicationCode.pdf."

Risk premium on lending (lending rate minus treasury bill rate, %) in Kenya was reported at 1.376 % in 2023, according to the World Bank collection of development indicators, compiled from officially recognized sources. Kenya - Risk premium on lending (prime rate minus treasury bill rate, %) - actual values, historical data, forecasts and projections were sourced from the World Bank on September of 2025.

Risk premium on lending of South Africa slumped by 6.13% from 3.56 % in 2023 to 3.34 % in 2024. Since the 11.90% surge in 2022, risk premium on lending dropped by 8.28% in 2024. 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.

Risk premium on lending (lending rate minus treasury bill rate, %) in Nigeria was reported at 9.278 % in 2023, according to the World Bank collection of development indicators, compiled from officially recognized sources. Nigeria - Risk premium on lending (prime rate minus treasury bill rate, %) - actual values, historical data, forecasts and projections were sourced from the World Bank on July of 2025.

This dataset is about books. It has 1 row and is filtered where the book is The levered equity risk premium and credit spreads : a unified framework. It features 7 columns including author, publication date, language, and book publisher.

View market daily updates and historical trends for US Corporate BBB Bond Risk Premium. from United States. Source: Bank of America Merrill Lynch. Track e…

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 * main concepts to MRPs, including required market risk premiums, historical market risk premiums and expected market risk premiums. In 2025, average market risk premiums in Poland decreased from the previous year to reach *** percent. Greece and Ukraine with the highest MRP in Europe In 2023, Poland was relatively well-placed for average market risk premiums in Europe, compared to other countries. Countries with the highest MRP, and therefore of the highest investment risk included Ukraine and Russia. Poland's risk premiums reached *** percent. Ukraine risk premiums averaged at ** percent in 2023. 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 (except for Turkey and Ukraine) were relatively low in 2023. The risk-free rate of investment in Poland was *** percent as of 2023.

Bulgaria BG: Risk Premium on Lending: Lending Rate Minus Treasury Bill Rate data was reported at 7.078 % pa in 2015. This records an increase from the previous number of 7.048 % pa for 2014. Bulgaria BG: Risk Premium on Lending: Lending Rate Minus Treasury Bill Rate data is updated yearly, averaging 7.048 % pa from Dec 2006 (Median) to 2015, with 9 observations. The data reached an all-time high of 9.377 % pa in 2011 and a record low of 6.140 % pa in 2007. Bulgaria BG: 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 Bulgaria – Table BG.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.;;

Armenia AM: Risk Premium on Lending: Lending Rate Minus Treasury Bill Rate data was reported at 1.253 % pa in 2023. This records an increase from the previous number of 1.131 % pa for 2022. Armenia AM: Risk Premium on Lending: Lending Rate Minus Treasury Bill Rate data is updated yearly, averaging 7.526 % pa from Dec 2001 (Median) to 2023, with 23 observations. The data reached an all-time high of 13.934 % pa in 2005 and a record low of 1.131 % pa in 2022. Armenia AM: 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 Armenia – Table AM.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.;;

Tanzania TZ: Risk Premium on Lending: Lending Rate Minus Treasury Bill Rate data was reported at -0.215 % pa in 2016. This records a decrease from the previous number of 3.234 % pa for 2015. Tanzania TZ: Risk Premium on Lending: Lending Rate Minus Treasury Bill Rate data is updated yearly, averaging 7.378 % pa from Dec 1995 (Median) to 2016, with 22 observations. The data reached an all-time high of 18.668 % pa in 1996 and a record low of -0.215 % pa in 2016. Tanzania TZ: 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 Tanzania – Table TZ.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.; ;