Value-added information in term structure: the case of Malaysian government securities

This study empirically examines the impact of value-added information in the risk premium on the predictability of longer maturity term structure about future short-term rates in Malaysian fixed income securities market. Regardless of the absence of a time-varying risk premium in the interest rate,...

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Main Authors: Elshareif, Elgilani Eltahir, Yusop, Zulkornain, Tan, Hui Boon
Format: Article
Language:English
Published: Faculty of Economics and Management, Universiti Putra Malaysia 2008
Online Access:http://psasir.upm.edu.my/id/eprint/689/
http://psasir.upm.edu.my/id/eprint/689/1/bab10.pdf
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author Elshareif, Elgilani Eltahir
Yusop, Zulkornain
Tan, Hui Boon
author_facet Elshareif, Elgilani Eltahir
Yusop, Zulkornain
Tan, Hui Boon
author_sort Elshareif, Elgilani Eltahir
building UPM Institutional Repository
collection Online Access
description This study empirically examines the impact of value-added information in the risk premium on the predictability of longer maturity term structure about future short-term rates in Malaysian fixed income securities market. Regardless of the absence of a time-varying risk premium in the interest rate, the Generalized Method of Moment (GMM) results suggest that there is statistical evidence to support that the longer-term spread between long-term and short-term rates does have some significant power in predicting the changes in expected future short-term rate. This implies the stability of the short-term interest rates in Malaysia.
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language English
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spelling upm-6892015-07-06T01:55:59Z http://psasir.upm.edu.my/id/eprint/689/ Value-added information in term structure: the case of Malaysian government securities Elshareif, Elgilani Eltahir Yusop, Zulkornain Tan, Hui Boon This study empirically examines the impact of value-added information in the risk premium on the predictability of longer maturity term structure about future short-term rates in Malaysian fixed income securities market. Regardless of the absence of a time-varying risk premium in the interest rate, the Generalized Method of Moment (GMM) results suggest that there is statistical evidence to support that the longer-term spread between long-term and short-term rates does have some significant power in predicting the changes in expected future short-term rate. This implies the stability of the short-term interest rates in Malaysia. Faculty of Economics and Management, Universiti Putra Malaysia 2008-06 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/689/1/bab10.pdf Elshareif, Elgilani Eltahir and Yusop, Zulkornain and Tan, Hui Boon (2008) Value-added information in term structure: the case of Malaysian government securities. International Journal of Economics and Management, 2 (1). pp. 195-206. ISSN 1823-836X http://econ.upm.edu.my/ijem/vol2_no1.htm
spellingShingle Elshareif, Elgilani Eltahir
Yusop, Zulkornain
Tan, Hui Boon
Value-added information in term structure: the case of Malaysian government securities
title Value-added information in term structure: the case of Malaysian government securities
title_full Value-added information in term structure: the case of Malaysian government securities
title_fullStr Value-added information in term structure: the case of Malaysian government securities
title_full_unstemmed Value-added information in term structure: the case of Malaysian government securities
title_short Value-added information in term structure: the case of Malaysian government securities
title_sort value-added information in term structure: the case of malaysian government securities
url http://psasir.upm.edu.my/id/eprint/689/
http://psasir.upm.edu.my/id/eprint/689/
http://psasir.upm.edu.my/id/eprint/689/1/bab10.pdf