International evidence on bond risk premia

B-Tier
Journal: Journal of Banking & Finance
Year: 2011
Volume: 35
Issue: 1
Pages: 174-181

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper revisits the study of time-varying excess bond returns in international bond markets. Using newly available yield curve data from 10 different countries with independent monetary policy, I test the robustness of Cochrane and Piazzesi (2005). For most countries in my sample, I find more modest predictive power for forward rates than originally found by Cochrane and Piazzesi (2005) for the US. Their single-factor model captures well the predictability in international data, and this factor also tends to have a tent-shape in most countries of my sample. CP factors are more idiosyncratic across countries than yields or forward rates. Finally, I show that the recent financial crisis has significantly affected the predictability of excess bond returns.

Technical Details

RePEc Handle
repec:eee:jbfina:v:35:y:2011:i:1:p:174-181
Journal Field
Finance
Author Count
1
Added to Database
2026-01-29