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We examine empirically how the maturity structure of government debt affects bond yields and excess returns. Our …
Persistent link: https://www.econbiz.de/10012464841
From a macroeconomic perspective, the short-term interest rate is a policy instrument under the direct control of the central bank. From a finance perspective, long rates are risk-adjusted averages of expected future short rates. Thus, as illustrated by much recent research, a joint...
Persistent link: https://www.econbiz.de/10012467596
We study the link between the choice of rule-based public contracts and political hazards using the municipal bond … that includes 6,500 bond issuances nationwide as well as election data on over 400 cities over 20 years. We provide … as a revenue bond by 3-15% and the probability of issuing bonds through competitive bids by 7%. We test a few additional …
Persistent link: https://www.econbiz.de/10012457479
follow simple time-series processes whose parameters can be estimated from the cross-section of bond prices. The extracted …
Persistent link: https://www.econbiz.de/10012473007
The recent introduction of CPI-linked bonds by several financial institutions is a milestone in the history of the U.S. financial system. It has potentially far-reaching effects on individual and institutional asset allocation decisions because these securities represent the only true long-run...
Persistent link: https://www.econbiz.de/10012476264
This paper tests several competing models of municipal bond market equilibrium. It analyzes the influence of changes in …
Persistent link: https://www.econbiz.de/10012477619
Social impact bonds (SIBs) are an innovative financing mechanism for public goods. In a SIB, an investor provides capital to a service provider for a social intervention. The investor receives a return based on the outcome of the intervention relative to a predetermined benchmark. We describe...
Persistent link: https://www.econbiz.de/10012481382
and nominal bond risks in the presence of risk-averse investors. In our model, low credibility governments inflate during …. We provide empirical support for this mechanism, showing that countries with higher nominal bond-stock betas have … significantly larger nominal bond risk premia and borrow less in local currency …
Persistent link: https://www.econbiz.de/10012456087
We establish that creditor beliefs regarding future borrowing can be self-fulfilling, leading to multiple equilibria with markedly different debt accumulation patterns. We characterize such indeterminacy in the Eaton-Gersovitz sovereign debt model augmented with long maturity bonds. Two...
Persistent link: https://www.econbiz.de/10012453037
coordinated Euro-area-wide safe bond design. Eurobonds deliver welfare benefits only when they make up a sufficiently large …
Persistent link: https://www.econbiz.de/10012456404