This study examines the potential risk reducing benefits of credit default swaps (CDS) against risk in U.S. stock market sectors from 2004-2011. Tests of GARCH dynamic conditional correlation coefficients indicate that CDS serve as an effective hedge against risk in all stock sectors. CDS also...

This paper investigates the use of gold as an investment asset. The data consist of U.S. and foreign equity returns from 1975-2005. The results indicate that investment in gold is inferior to a simple buy-and-hold strategy of U.S. equities over the long-term. Gold is often believed to provide...

This paper tests sovereign credit default swaps (CDS) as a hedge and safe haven asset against stock index returns in a sample of 18 emerging markets from 2005-2014. GARCH dynamic conditional correlation analysis indicates that CDS are an effective hedge due to the consistent inverse relationship...