This paper explores the dynamic relationship between stock market implied credit spreads, CDS spreads, and bond spreads …

We analyze trading opportunities that arise from differences between the bond and the CDS market. By simultaneously … entering a position in a CDS contract and the underlying bond, traders can build a default-risk free position that allows them … to repeatedly earn the difference between the bond asset swap spread and the CDS, known as the basis. We show that the …

In this paper we estimate and interpret the factors that jointly determine bond returns of different maturities in the … US, Germany and Japan. We analyze both currency-hedged as well as unhedged bond returns. For currency-hedged bond returns …, we find that five factors explain 96.5% of the variation of bond returns. These factors can be associated with changes in …

, which is more pronounced for higher maturities and when risk aversion proxied by bond market volatility is high. Going …

, cumulatively, due to low bond yields since the onset of the Euro crisis. In order to determine the contribution of the "flight to … quality" to this sum, we define the flight to quality as a factor which has caused German bond yields and crisis country bond …

what extent and why political communication has had an impact on the sovereign bond spreads of selected euro area countries … bond spreads. This effect can be positive or negative depending on the type of communication, possibly fueling self …