Bond spreads and economic activity in eight European economies
We provide new insights into the relationship between financial market tightness and real activity, using a new database of corporate bonds issued in eight European countries. Bond spreads have a significant negative relationship with four real activity variables at horizons 1–8 quarters ahead. The...
| Main Authors: | , , |
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| Format: | Article |
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Wiley
2016
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| Online Access: | https://eprints.nottingham.ac.uk/32916/ |
| _version_ | 1848794517870739456 |
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| author | Bleaney, Michael Mizen, Paul Veleanu, Veronica |
| author_facet | Bleaney, Michael Mizen, Paul Veleanu, Veronica |
| author_sort | Bleaney, Michael |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | We provide new insights into the relationship between financial market tightness and real activity, using a new database of corporate bonds issued in eight European countries. Bond spreads have a significant negative relationship with four real activity variables at horizons 1–8 quarters ahead. The relationship is robust to adding measures of monetary policy tightness and leading indicators, providing strong support for models previously only evaluated on US data. A subset of northern European countries have similar sensitivity of real GDP to bond spreads, but others have greater sensitivity to bond spreads, revealing diverse responses in Europe to financial market tightness. |
| first_indexed | 2025-11-14T19:17:27Z |
| format | Article |
| id | nottingham-32916 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T19:17:27Z |
| publishDate | 2016 |
| publisher | Wiley |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-329162020-05-04T17:34:49Z https://eprints.nottingham.ac.uk/32916/ Bond spreads and economic activity in eight European economies Bleaney, Michael Mizen, Paul Veleanu, Veronica We provide new insights into the relationship between financial market tightness and real activity, using a new database of corporate bonds issued in eight European countries. Bond spreads have a significant negative relationship with four real activity variables at horizons 1–8 quarters ahead. The relationship is robust to adding measures of monetary policy tightness and leading indicators, providing strong support for models previously only evaluated on US data. A subset of northern European countries have similar sensitivity of real GDP to bond spreads, but others have greater sensitivity to bond spreads, revealing diverse responses in Europe to financial market tightness. Wiley 2016-02-29 Article PeerReviewed Bleaney, Michael, Mizen, Paul and Veleanu, Veronica (2016) Bond spreads and economic activity in eight European economies. Economic Journal, 126 (598). pp. 2257-2291. ISSN 0013-0133 http://onlinelibrary.wiley.com/doi/10.1111/ecoj.12288/abstract doi:10.1111/ecoj.12288 doi:10.1111/ecoj.12288 |
| spellingShingle | Bleaney, Michael Mizen, Paul Veleanu, Veronica Bond spreads and economic activity in eight European economies |
| title | Bond spreads and economic activity in eight European economies |
| title_full | Bond spreads and economic activity in eight European economies |
| title_fullStr | Bond spreads and economic activity in eight European economies |
| title_full_unstemmed | Bond spreads and economic activity in eight European economies |
| title_short | Bond spreads and economic activity in eight European economies |
| title_sort | bond spreads and economic activity in eight european economies |
| url | https://eprints.nottingham.ac.uk/32916/ https://eprints.nottingham.ac.uk/32916/ https://eprints.nottingham.ac.uk/32916/ |