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How does uncertainty affect the costs of raising finance in the bond market and via bank loans? Empirically, this paper … finds that heightened uncertainty is accompanied by an increase in corporate bond yields and a decrease in bank lending … the value of the lending relationship and lowers the lending rate. Bond investors demand compensation for the increased …
Persistent link: https://www.econbiz.de/10012892132
Over the last decade foreign bond portfolio positions in US dollar assets have risen above the reciprocal US investor … bond positions, which creates a net hedging demand for dollar assets that depreciates USD rates in both the forward and …-nomic uncertainty and the US net foreign bond position in various currencies. Based on a parsimonious VAR model, we find that changes in …
Persistent link: https://www.econbiz.de/10014242128
We study the interplay between tenure decisions, stock market investment and the public social security system. Housing equity not only serves a dual purpose as a consumption good and as an asset, but also provides insurance to buffer various risks in retirement. Our life cycle model captures...
Persistent link: https://www.econbiz.de/10012864931
green bond returns and volatilities. On the whole, the evidence suggests weaker linkages, and thus a lower degree of …
Persistent link: https://www.econbiz.de/10014358701
This paper empirically investigates the relationship between TV news coverage and the GIIPS countries’ bond yield …
Persistent link: https://www.econbiz.de/10012892159
This paper analyses persistence and non-linearities in quarterly and monthly US Treasury 10-year bond yields over the …
Persistent link: https://www.econbiz.de/10013306037
The price of a safe asset reflects not only the expected discounted future cash flows but also future service flows, since retrading allows partial insurance of idiosyncratic risk in an incomplete markets setting. This lowers the issuers’ interest burden and allows the government to run a...
Persistent link: https://www.econbiz.de/10013308246
How will sovereign debt markets evolve in the 21st century? We survey how the literature has responded to the eurozone debt crisis, placing “lessons learned” in historical perspective. The crisis featured: (i) the return of debt problems to advanced economies; (ii) a bank-sovereign...
Persistent link: https://www.econbiz.de/10012582022
How will sovereign debt markets evolve in the 21st century? We survey how the literature has responded to the eurozone debt crisis, placing “lessons learned” in historical perspective. The crisis featured: (i) the return of debt problems to advanced economies; (ii) a bank-sovereign...
Persistent link: https://www.econbiz.de/10013237219
ideas: (1) to create multitranche "sovereign bond-backed securities" (SBBS), of which the senior tranche would constitute a … safe asset; (2) to create a senior, publicly owned financial intermediary that would issue a bond backed by a diversified … diversified pool of senior sovereign bonds ("multitranche national bond issuance"). Public attention (including public criticism …
Persistent link: https://www.econbiz.de/10012865169