Title

Risk, Uncertainty, and the Perceived Threat of Terrorist Attacks: Evidence of Flight-to-Quality

Author First name, Last name, Institution

T. Shawn Strother

Document Type

Article

Source of Publication

SSRN Electronic Journal

Publication Date

1-1-2013

Abstract

Information provided by the US Department of Homeland Security regarding potential terrorist attacks significantly affects US Treasury securities markets. When the government announces heightened terror alert levels, investors' perceptions of risk increase and investors purchase 1-month and 1-year Treasury bills and 3-year, 5-year, 7-year, and 10-year US Treasuries in a "flight-to-quality" episode. Partial anticipation of increased threat level announcements is stronger than the anticipation of announcements regarding the federal funds rate during the 10 days prior to an announcement.

ISSN

1556-5068

Publisher

Elsevier BV

Volume

3

Last Page

25

Disciplines

Business

Indexed in Scopus

no

Open Access

no

Share

COinS