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model, I show that declining real interest rates since the 1980s increased the risk premium, driving the increase in risky …
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This paper documents that the bond investments of insurance companies transmit shocks from insurance markets to the real economy. Liquidity windfalls from household insurance purchases increase insurers' demand for corporate bonds. Exploiting the fact that insurers persistently invest in a small...
Persistent link: https://www.econbiz.de/10012818411
This paper documents that the bond investments of insurance companies transmit shocks from insurance markets to the real economy. Liquidity windfalls from household insurance purchases increase insurers' demand for corporate bonds. Exploiting the fact that insurers persistently invest in a small...
Persistent link: https://www.econbiz.de/10012671848