The COVID-19 and bond spreads

Rui Esteves; Nathan Sussman

doi:10.1515/ev-2020-0013

The COVID-19 and bond spreads

Rui Esteves, Nathan Sussman^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

4 Scopus citations

Abstract

Financial markets reacted with a vengeance to the COVID-19 pandemic. We argue that while the spread of the pandemic is statistically significant in explaining changes to bond spreads, it has little additional explanatory power over variables that capture financial stress. Financial markets reacted as in any international financial crisis by penalizing emerging economies exposing existing vulnerabilities. This finding highlights the need for credible, but flexible, sovereign currencies and the need to build up liquidity reserves.

Original language	English
Article number	20200013
Journal	Economists' Voice
Volume	17
Issue number	1
DOIs	https://doi.org/10.1515/ev-2020-0013
State	Published - 1 Dec 2020
Externally published	Yes

Bibliographical note

Publisher Copyright:
© 2020 Walter de Gruyter GmbH, Berlin/Boston 2020.

Keywords

bond spreads
COVID19
emerging markets
financial markets
monetary policy

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1515/ev-2020-0013

Cite this

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The COVID-19 and bond spreads

Abstract

Bibliographical note

Keywords

UN SDGs

Access to Document

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