Understanding the behaviour of the equity yield and its relation to the bond yield is important for portfolio managers … previously greater than the bond yield-declined, while the bond yield rose and became higher. Research, seeking to understand … this, put forward the view that stock and bond return volatility is key. Evidence from the 2000s suggest that the relative …

This paper examines the behaviour of stock and bond markets across four major international countries. The results … the stock and bond return correlation within each country declines. Moreover, results show that the stock and bond return … correlations exhibit commonality across countries. Results also demonstrate that stock returns lead movement in bond returns, while …

-linear models for stock and bond returns in the G7 countries. Besides Markov switching, threshold autoregressive (TAR), and smooth …-linear dynamics, especially of the Markov switching type. Although occasionally also stock and bond return forecasts for other G7 …