The Demand for Emerging Market Bonds

Author First name, Last name, Institution

Zaghum UmarFollow
Laura Spierdijk

Document Type

Article

Source of Publication

SSRN Electronic Journal

Publication Date

1-1-2013

Abstract

We study the multi-period asset allocation problem for emerging market investors whose asset menu consists of stocks, bonds and bills. We consider two types of emerging market investors: domestic investors (with returns in local currency) and international investors who can invest in US and emerging markets assets (with returns in US dollars). In developed markets, long-term government bonds are often considered attractive investment options for risk-averse investors. Our results show that emerging market bonds with a maturity of one year and longer can be attractive for domestic and international investors with different risk preferences, in both the short run and the long run.

ISSN

1556-5068

Publisher

Elsevier BV

Disciplines

Business | Physical Sciences and Mathematics

Indexed in Scopus

no

Open Access

no

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