Welcome to the Financial Times Lexicon

Browse thousands of words and phrases selected by Financial Times editors and suggest new terms for the glossary.

 

Term of the day

risk-free asset

Risk-free assets are those whose rate of return is seen as certain and are generally defined as high quality government bonds. However, as the eurozone sovereign debt crisis progressed in 2012 analysts and investors increasingly questioned not only whether weaker eurozone sovereign credits were risk free; they extended their concerns to US Treasuries and UK gilts.

Risk-free assets are defined by the Bank for International Settlements, the central bankers' bank based in Basel, which assesses the...