Bonds, Bond Prices, Interest Rates, and the Risk and Term ...

We estimate that when a country’s home interest rate is 100 basis-points lower, its investment in U.S. corporate bonds rises by 3.6 to 5.3 percent of GDP. The effects for investment in Treasuries are much smaller and only evident in the post-crises period: an equivalent drop in the home interest rate is associated with a rise in investment ... ................
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