We test whether credit risk for Emerging Market Sovereigns is priced equally in the credit default swap (CDS) and bond markets. The parity relationship between CDS premiums and bond yield spreads (BYS), that was tested and largely confirmed in the literature, is mostly rejected. Prices below par...

This paper identifies five universal currency hedge ratio (UHR) definitions. These are hedge positions in foreign bonds, stated as a fraction of national or global equity portfolios, that are the same for all investors, regardless of nationality. The first three involve the total demand for...

The voluntary and mandatory direct investment control programs instituted since 1965 were directed at new outflows of funds from the U.S. and reinvested earnings abroad. It was not their aim to curb plant and equipment expenditures as such.11Anthony M. Solomon, “Foreign Investment Controls:...