What we are looking at is a marked moving back into shorter-term financing, which is what ordinarily one would expect when you see a significant degree of risk aversion
emerging in the context of the type of markets we are looking at.
Another cause for the increase in risk aversion
is the costly mishap, at JPMorgan Chase, last week.
Based on prior theoretical and empirical work, we examine a series of testable hypotheses related to risk aversion
, substitution, preservation, demographics, premium reduction, and neighbor effects.
Some analysts expect any rise in risk aversion
to buoy Swissie, while others expressed concern about the franc's current high valuation hampering exporters.
The greenback advanced across the board following the rise in risk aversion
and may continue to strengthen going into the North American trade as equity futures foreshadow a lower open for the U.
The yen rose against the euro and higher-yielding currencies on Wednesday, with struggling European shares helping to spur risk aversion
ahead of expected economic stimulus by the European Union.
It is known that yon Neumann and Mogenstern's (1944) theory of expected utility maximization and Arrow (1963) and Pratt's (1964) measures of risk aversion
have been widely adopted to examine the economics of choices involving risk.
On the basis of the individual's response, he is grouped into one of six categories which can be ranked by risk aversion
without assuming a particular functional form for the utility function.
The dollar has benefited from this month's elevated risk aversion
, up nearly 6 percent against a currency basket.
THIS year's heady bout of risk aversion
on financial markets has ratcheted up demand for gold, US Treasuries and the Swiss franc to levels that suggest they may no longer be the "safe havens" they are billed as.
Turkey's economy and financial markets were unlikely to suffer a long-term impact from developments rocking global markets, the prime minister's office said on August 9, after days of sharp declines in emerging markets, including Turkey, because of growing risk aversion
among investors, Today's Zaman said.
Key market indicators show an increase in global risk aversion
and unease since YE10.