4  Pain and Sollie (2006) argue that in the United States the impact is evenly distributed over the ten-year period considered, whereas in the euro area the disinflationary effect is concentrated mainly in the period 2001-05. 2  BIS Review 35/2008  3.
They compensate investors for different risks attached to term investments: •  The term risk premium for holding on to an asset for a specific period of time;  •  The liquidity risk premium as the compensation for the possibility of incurring losses when selling the asset back to the market before maturity and at short notice; and  •  Credit risk premia of various types as compensation for the possibility of not receiving at maturity repayment for the principal because, for instance, borrowers may renege on their contractual obligations.