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To put these prices in perspective, consider that at these spreads, a full 25% of the price of long-term Baa-rated corporates represents compensation for default risk.
A corporate bonds spread to Treasurys represents compensation for default risk, and a simple formula relates a given spread to an implied probability of default.
We calculated the percentage of the price of a long Baa corporate that represents compensation for credit risk (the present value of spread payments over the maturity of the bond as a percentage of par).
To put this in perspective, consider that at these spreads, 25% of the price of long-term Baa-rated corporates represents compensation for default risk (at least, for tax-exempt lenders like IRA accounts).
The observed optimal codon usage on the X-chromosome likely represents compensation on the translational level.
The authors postulate that this phenomenon represents compensation for the failure of normal neural systems when challenged with specific learning tasks.
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It is important to mention that both intermediate CO2 treatments (I, IV) constitute 57% and 27% of the over-represented GO terms, respectively, representing compensation mechanisms mentioned above.
The Unites State Court of Appeals for the Third Circuit sided with the city and voided the fee award, saying that both $262 million and $187 million were "staggering in their size" and "may represent compensation at an astonishing hourly rate".
A generous estimate of total world retail expenditure is $150 billion.Furthermore, most of the American and West European expenditure on cocaine, heroin and other drugs goes to domestic distributors, representing compensation for the risks of imprisonment and injury incurred in that business.
Both spreads represent compensation for undertaking risk of one kind or the other.
These results suggest that the higher returns associated with contrarian investment strategies are the result of the higher illiquidity associated with value portfolios and represent compensation that the investor receives for accepting illiquidity.
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CEO of Professional Science Editing for Scientists @ prosciediting.com