Logged out
Access All our Essays in an Instant
Swap your work for FREE access, or pay £4.99 for instant access
An Empirical Investigation into the Causes and Effects of Liquidity in Emerging
Member rating: No Rating | Words: | Submitted: Tue Oct 25 2005
Page Preview
On the left is an image preview of every page of this document, and below are the first 150 words with formatting removed:
An Empirical Investigation into the Causes and Effects of Liquidity in Emerging Market Sovereign Bonds and US High-Yield Corporate Bonds 1. Introduction Emerging market sovereign bonds and US high-yield corporate bonds have increasingly become competing asset classes over the past decade. Investors have turned to both markets in the search for high yield following global economic slowdown and low global interest rates. One main concern investors have about both bond markets is their liquidity risk. Owing to the nature of fixed income securities, higher return is often associated with higher risk. High-yield bonds have below investment grade ratings because of the high probability of default of the country issuing the security. This means that it can be difficult to sell such assets at the correct market price and so a liquidity premium exists. This can be measured by the difference between the bid and ask prices on the bond in question. If investors are...
Get instant access
- Instant, unlimited access to our documents in full
- Swap your work for free access, or pay £4.99
- To see the full version of this document and 146,871 others
Receive email updates for this category
- Simply tell us your email address and receive a weekly Study Help Email for FREE
- Receive 3 FREE essay views with each email
- Get all the latest essays from Coursework.Info & discussion from TheStudentRoom.co.uk
