risk-on
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English
[edit]Alternative forms
[edit]Noun
[edit]- (finance) A mode of investment behavior in which investors shift low-risk investments to more profitable high-risk investments.
- 2011, Brian Dolan, Currency Trading For Dummies, →ISBN, page 98:
- In a risk-on environment, they then sell those currencies and use the proceeds to buy risk assets with greater price appreciation potential. In a risk-off environment, they're compelled to sell their risk assets and buy back those funding currencies that they previously sold.
- 2014, Eric Barthalon, Uncertainty, Expectations, and Financial Instability, →ISBN, page 195:
- The higher the value of c1 (i.e., the higher the value of α), the faster the transition from a risk-off to a risk-on mode.
- 2014, Rakesh Mohan, Muneesh Kapur, Monetary Policy Coordination and the Role of Central Banks, →ISBN:
- Capital flows have, however, continued to exhibit their well-known volatility, given the risk-on and risk-off scenario driven by investors' perception of the macroeconomic and financial developments in the source countries rather than the recipient countries.