Overshooting of Sovereign Emerging Eurobond Yields in the Context of COVID-19

Posted: 20 Apr 2021

See all articles by Babacar Sene

Babacar Sene

Laboratoire de Finances pour le Développement (LAFIDEV)

Mohamed Lamine Mbengue

Gaston Berger University

Mouhamad M. Allaya

Independent

Date Written: 2021

Abstract

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

SENE, Babacar and Mbengue, Mohamed Lamine and Allaya, Mouhamad M., Overshooting of Sovereign Emerging Eurobond Yields in the Context of COVID-19 (2021). Finance Research Letters, Vol. 38, No. 101746, 2021, Available at SSRN: https://ssrn.com/abstract=3829000

Babacar SENE (Contact Author)

Laboratoire de Finances pour le Développement (LAFIDEV) ( email )

Castors
Dakar
Senegal
00221784628324 (Phone)

HOME PAGE: http://https://www.lafidev.org

Mohamed Lamine Mbengue

Gaston Berger University ( email )

Saint Louis
Senegal

Mouhamad M. Allaya

Independent ( email )

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