RT Journal Article
SR Electronic
T1 U.S. Interest Rates and Emerging Market Bond
Yield Spreads: A Changing Relationship?
JF The Journal of Fixed Income
FD Institutional Investor Journals
SP 48
OP 52
DO 10.3905/jfi.2013.22.4.048
VO 22
IS 4
A1 Cheikh A. Gueye
A1 Amadou N.R. Sy
YR 2013
UL https://pm-research.com/content/22/4/48.abstract
AB The empirical evidence on the impact of international interest rates on emerging market (EM) bond spreads is mixed. In this article, we closely examine the 2000–2009 period and find a negative relationship between U.S. interest rates and EM bond spreads. We argue that the relationship between U.S. short rates and EM bond spreads is unstable and can change depending on how other “push” and “pull” factors, such as investors’ appetite for risk and emerging markets’ economic fundamentals, interact.TOPICS: Fixed income and structured finance, emerging