Consequently, corporate bond spreads
are likely to remain under pressure.
Even when adjusting for the blowout in bond spreads
in Argentina this month, this financial measure holds at 5.9 percentage points, still the widest in more than a decade.
TABLE 1 Summary statistics of discrepancies in CDS and cash bond spreads
Before Crisis Crisis I Crisis II July 2006-June July 2007-Aug.
The tight liquidity is visible in high credit-deposit ratio and elevated corporate bond spreads
. RBI's commentary on liquidity should be closely watched," said Khattar.
Non-life insurers are less exposed to government bond spreads
(and asset performance in general), as investment represents a smaller part of their business.
Then government spokesman Stephanos Stephanou had stated "the loan will enable Cyprus to cover its medium-term refinancing needs, avoiding liquidity strains on local commercial banks, as well as restore international investors' confidence and ease the rising tendencies on Cypriot bond spreads
in the European secondary markets".
The report expects Lebanese bond spreads
to retrace the widening since January 10, and expects the front end to benefit the most along the curve.
Bond market spillovers from Saudi to other GCC countries are found to be insignificant, which is consistent with previous findings that bond spreads
are largely influenced by global factors.
increased, and concern rose over bond issuers' ability to repay their bonds.
An additional advantage of this ground-up approach is that we are able to construct matched portfolios of equity returns, allowing us to examine the information content of bond spreads
that is independent of the information contained in stock prices of the same set of firms, as well as in macroeconomic variables measuring economic activity, inflation, interest rates, and other financial indicators.
"Despite February's challenging market conditions, our latest analysis of portfolio allocation trends shows a relative preference for local currency EM bond allocations, consistent with the tightening of local currency bond spreads
relative to US Treasuries observed last month (which has held up for many in early March).
(2013) who find a robust negative effect of fiscal rules on bond spreads
for Swiss cantons.