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Interpretation of risk-free loan terms
Risk-free loan refers to the investment method of investing in risk-free assets, and its investment rate of return is certain.

1. In a single investment period, investors can accurately know the exact value of their investment assets at the end of the period through this investment method.

2. Risk-free assets shall meet the following conditions:

① There is no possibility of default. All corporate securities may default, so they are not risk-free assets.

② There is no market risk. Any security whose maturity exceeds the investment period is not a risk-free asset. Based on the above two points, strictly speaking, only treasury bonds with a term equal to the investment term are risk-free assets. But in reality, people often regard one-year treasury bonds or money market funds as risk-free assets.

Tips: The above information is for reference only.

Reply time: 202 1-09-06. Please refer to the latest business changes announced by Ping An Bank in official website.

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