risk-off
Word Rarity
Common
Frequency: Zipf frequency 5.00 in modern English
17
Scrabble Score
7
Letters
2
Syllables
6
Unique Chars
Meaning
noun
A mode of investment behavior in which investors shift high-risk investments to low-risk investments.
Uncountable
Example Sentences
- "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."
- "The yen tends to appreciate in the aftermath – first two quarters – of risk-off episodes, whether the appreciation is measured as nominal, real effective, or bilateral against the U.S. dollar (Figure 6)."
- "It is also noteworthy that risk-off events have happened more often since 2007."
- "My answer is a straightforward no, but that the recent episode of global financial market turmoil is likely to be more serious than any period of volatility and risk-off behaviour since 2009."