Re: Long run interest rate projections & public finance

[Max Sawicky <sawicky@xxxxxxxxxx>]

A mainstream, optimistic estimate for stocks alone (e.g., Jeremy Siegel
at Wharton) is six percent (real terms).  Once you mix in bonds and Gov
securities, it obviously goes lower.



-----Original Message-----
From: PEN-L list [mailto:PEN-L@xxxxxxxxxxxxxxxx] On Behalf Of Alex
Lantsberg
Sent: Friday, August 26, 2005 11:36 AM
To: PEN-L@xxxxxxxxxxxxxxxx
Subject: Long run interest rate projections & public finance

PEN-pals...

I'm critiquing a report establishing development mitigation fees that
are in
part based on long-term returns to a public investment annuity fund.
Can
anyone point me to a chart or table showing average annual effective
yields
for a variety of financial instruments including US Treasuries, munis,
and
high grade corporate bonds?  Also is the assumption of a 6.11% return in
perpetuity for a relatively conservative investment fund optimistic?

Thanks
Alex