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Why Don't the Prices of Stocks and Bonds Move Together?

Barsky, Robert B. - 1986

The very low real interest rates on bonds in the 1970's were accompanied by a large drop in the value of common stocks relative to dividends and earnings. More generally, a number of authors have demonstrated that the real prices of debt and equity claims do not covary closely, and often move in...

Persistent link: https://www.econbiz.de/10012477022

When bonds matter : home bias in goods and assets

Coeurdacier, Nicolas; Gourinchas, Pierre-Olivier - In: Journal of monetary economics 82 (2016), pp. 119-137

Persistent link: https://www.econbiz.de/10011709482

When Bonds Matter : Home Bias in Goods and Assets

Coeurdacier, Nicolas - 2011

share of the equity home bias and obtain a currency exposure of bond portfolios comparable to the data … foreign real bonds. Bonds matter: in equilibrium, investors structure their bond portfolio to hedge real exchange rate risk … since relative bond returns are strongly correlated with real exchange rate movements. Equity home bias does not arise from …

Persistent link: https://www.econbiz.de/10012461098