EMU and European government bond market integration

In this study we adopt the CAPM-based model of Bekaert and Harvey (1995) to compare the differences in the relative importance of two sources of systemic risk (world and Eurozone) on Government bond returns, in two groups of countries in EU-15. Results show that euro markets are less vulnerable to t...

Full description

Bibliographic Details
Authors: Abad, Pilar, Chuliá Soler, Helena, Gómez-Puig, Marta
Format: article
Status:Versión aceptada para publicación
Publication Date:2010
Country:España
Institution:Universidad de Barcelona
Repository:Dipòsit Digital de la UB
OAI Identifier:oai:diposit.ub.edu:2445/106982
Online Access:https://hdl.handle.net/2445/106982
Access Level:Open access
Keyword:Unions monetàries
Borsa de valors
Bons
Mercat financer
Monetary unions
Stock-exchange
Bonds
Financial market
Description
Summary:In this study we adopt the CAPM-based model of Bekaert and Harvey (1995) to compare the differences in the relative importance of two sources of systemic risk (world and Eurozone) on Government bond returns, in two groups of countries in EU-15. Results show that euro markets are less vulnerable to the influence of world risk factors, and more vulnerable to EMU risk factors. However, they are only partially integrated. For their part, the markets of the countries that decided to stay out of the Monetary Union present a higher vulnerability to external risk factors.