Topic: Bond Market
With Bonds, the Past Can Be Prologue
Patterns in corporate bond returns include abrupt short-term performance reversals and “momentum” waves that persist
When Financial Intermediaries Sneeze, These Assets Catch a Cold
Some investment vehicles are more reliant than others on the health of trading firms
Unintended Consequence of Stale Corporate Bond Fund Prices Amid Fed Tightening
In wild markets, do the most dated prices actually reduce redemptions?
Out of the 1990s Asian Crisis, a New Bond Market Rises
Local currency sovereign bonds transfer risk from issuer to buyer
Options Market Signals Scope of Federal Reserve Interventions
Traders see an implicit promise beyond specific asset purchases
One Way the Stock Market Sends Signals to Bond Traders
Thin stock trading, amid both price volatility and a period of potential economic change, leads bond investors to seek a higher yield
How Quantitative Easing Changed the Bond Market
Investors’ future expectations about QE policy lowered long-term yields, made investors feel safer holding the bonds
How Much Debt Can the Government Roll Over Forever?
Public bonds compete against other investments; a model of that relationship
How Life Insurers Insulate the Markets from Turmoil
Valentin Haddad’s research finds that insurers’ patient investing shields risky assets — and those who hold them — from steeper declines
How Bond and Stock Prices Combine to Influence Corporate Investment
Equity volatility can encourage — or dampen — investment, depending on a firm’s bond spread
How Banking’s Bifurcated Deposit Approach Is Altering Lending — and Risk
Offering higher deposit rates lessens emphasis on loans of fixed rate and longer maturity
Financial Constraints on Intermediaries Cause Asset Mispricing
Real-world bond data reveals how the capital positions and liquidity of middlemen affect prices of securities they broker
Corporate Bond Market Meltdown Averted after Fed Action
Decade-old bank-risk limits may have exacerbated liquidity problems
Banks Rent Out Their Balance Sheets — So Derivatives Cost More
Even before Dodd-Frank rules, the costs were significant
Are Interest Rates Really So Low?
Adjusting for inflation — and, crucially, for taxes — shows bond investors fare better than they might think
A ‘Safer’ Treasury Bond
The government’s floating rate notes feature an added measure of security: higher interest earnings in times of rising rates