Meyer, Josefin; Reinhart, Carmen M.; Trebesch, Christoph - 2021 - This draft: December2021
This paper studies external sovereign bonds as an asset class. We compile a new database of 266,000 monthly prices of … 91 countries. Our main insight is that, as in equity markets, the returns on external sovereign bonds have been … offered on external sovereign bonds. The observed returns are hard to reconcile with canonical theoretical models and the …