It takes the average reader and 34 minutes to read German Bond Yields and Debt Supply: Is There a “Bund Premium”? by Anne-Charlotte Paret
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Are Bunds special? This paper estimates the “Bund premium” as the difference in convenience yields between other sovereign safe assets and German government bonds adjusted for sovereign credit risk, liquidity and swap market frictions. A higher premium suggests less substitutability of sovereign bonds. We document a rise in the “Bund premium” in the post-crisis period. We show that there is a negative relationship of the premium with the relative supply of German sovereign bonds, which is more pronounced for higher maturities and when risk aversion proxied by bond market volatility is high. Going forward, we expect German government debt supply to remain scarce, with important implications for the ECB’s monetary policy strategy.
German Bond Yields and Debt Supply: Is There a “Bund Premium”? by Anne-Charlotte Paret is 34 pages long, and a total of 8,636 words.
This makes it 11% the length of the average book. It also has 11% more words than the average book.
The average oral reading speed is 183 words per minute. This means it takes and 47 minutes to read German Bond Yields and Debt Supply: Is There a “Bund Premium”? aloud.
German Bond Yields and Debt Supply: Is There a “Bund Premium”? is suitable for students ages 8 and up.
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