2009, hedging of currency risk substantially reduced the volatility of foreign investments at a quarterly investment … hedging for risk reduction purposes remained strong.In addition to its impact on risk, hedging affected returns in …

voting decisions. Thus, risk neutral individuals exhibit what we call political risk aversion. Yet individual uncertainty is …

explores how much of these large movements reflected shifts in (i) global risk aversion (ii) country-specific risks, directly … in the crisis, the surge in global risk aversion was a significant factor influencing sovereign spreads, while recently … Spain, as the emphasis has shifted towards short-term refinancing risk and long-term fiscal sustainability. The paper …

to an appreciation of the Thai baht. Foreign investors do not appear to hedge the foreign exchange risk related to their …

currency risk premia is positively related to the share of peso denominated debt in total debt and that the magnitude of this …

foreign exchange, interest rate, and credit risk. For surveillance purposes, this framework can easily be integrated into one …

rate adjustments. The formulation is theory-based, relying on balance of payments equilibrium conditions and international … Risk Response Index, which reflects the country-specific sensitivity of capital flow pressures to measures of global risk … aversion. For a large sample of countries over time, we demonstrate time variation in the effects of global risk on exchange …