exogenous increase in U.S.-specific uncertainty, modeled as higher volatility in U.S. assets, leads to higher risk premia in …Foreign investors' changing appetite for risk-taking has been shown to be a key determinant of the global financial … cycle. Such fluctuations in risk sentiment also correlate with the dynamics of uncovered interest parity (UIP) premia …

the co-movement between swap spreads, dealer positions, yield curve slope, and covered-interest-parity violations, and …