Overshooting of Sovereign Emerging Eurobond Yields in the Context of COVID-19
Posted: 20 Apr 2021
Date Written: 2021
This paper illustrates the phenomenon of overshooting yields on eurobonds issued by emerging and developing countries in the context of COVID-19. Using panel data from 48 emerging and developing countries, the results show that daily reports of confirmed cases have led to increases in yields and announcements of international creditor assistance to developing and emerging countries, which have calmed investor concerns.
Keywords: Overshooting, COVID-19, Yields to maturity, Emerging markets, Eurobonds, Announcements from international official creditors
JEL Classification: C33, F34, G01, G15
Suggested Citation: Suggested Citation