Government bond yields used as risk-free rate estimates are becoming problematic because governments themselves now default, making the assumption of a truly 'risk-free' government investment increasingly questionable.
causalpending
Speaker
Aswath DamodaranEvidence Quote
“Over the last few decades, we use government bond rates as our estimates of risk-free rates, and that process is getting messier because governments themselves default.”
Source
Aswath Damodaran: I Am More Cautious Than Ever— The Master Investor Podcast with Wilfred FrostCreated: 8/12/2026, 6:41:25 PM
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