-trading model, we show that the decline in market risk tolerance and information accuracy leads to trading loss under downside …This paper analyzes the influence of downside risk on defaultable bond returns. By introducing a defaultable bond … conditions. Our empirical analysis indicates that downside risk can explain a large proportion of the variation in yield spreads …

This paper investigates how recent changes in market interest rates have affected risk-adjusted returns. Returns are … adjusted for duration, a measure of interest rate risk. Prior to the 2007-2008 rate decrease, one-year Treasuries offered the … best risk/return tradeoff. As a result of the rate decrease, short rates dropped much more than longer rates, rendering the …