for observed levels of equity home bias. A key feature is that investors can trade equities as well as domestic and … foreign real bonds. Bonds matter: in equilibrium, investors structure their bond portfolio to hedge real exchange rate risk …

Household investors chase stock market returns. Surveys suggest that households intend to "ride the bubble" by buying … stocks early in a boom and selling stocks early in a bust. This implies that households use only liquid assets to chase … with ride-the-bubble intentions and instead indicating buy-and-hold intentions. The results are consistent with households …

that the effectiveness of debt assistance was undermined by some combination of increasing the indebtedness of financial …

timing effects. Our most striking and robust finding is that foreigners exhibit poor timing when reallocating between bonds … and equities within their U.S. portfolios. The poor timing of foreign investors--caused primarily by deliberate trading …

This paper investigates the long-term performance of Japanese firms issuing convertible debt or equity. We find that … these firms perform poorly even though the stock-price reaction to convertible debt and equity issue announcements is not … significantly negative for Japanese firms and Japanese firms do not issue equity or convertible debt following strong positive …

predictability of stock returns greatly increases the optimal demand for stocks. The role of nominal bonds in long-term portfolios … long-term inflation-indexed bonds and find that these bonds greatly increase the utility of conservative investors, who …

households hold little or no equity during much of the life cycle. The model also implies that the correlation between …