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Flights to Safety / Lieven Baele, Geert Bekaert, Koen Inghelbrecht, Min Wei.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Baele, Lieven.
Contributor:
National Bureau of Economic Research.
Bekaert, Geert.
Inghelbrecht, Koen.
Wei, Min, 1975-
Series:
Working Paper Series (National Bureau of Economic Research) no. w19095.
NBER working paper series no. w19095
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2013.
Summary:
We identify flight-to-safety (FTS) days for 23 countries using only stock and bond returns and a model averaging approach. FTS days comprise less than 2% of the sample, and are associated with a 2.7% average bond-equity return differential and significant flows out of equity funds and into government bond and money market funds. FTS represents flights to both quality and liquidity in international equity markets, but mainly a flight-to-quality in the US corporate bond market. Emerging markets, endowment funds, and hedge funds all perform poorly during FTS, while hedge funds appear to vary their systematic exposures prior to a FTS.
Notes:
Print version record
May 2013.

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