The Informational Advantage of Foreign Investors: An Empirical Study of the Swedish Bond Market
AbstractThis paper uses a unique dataset on daily capital ows to the Swedish bond market to analyse the relative information endowment of domestic and foreign investors. Using the standard framework of a noisy rational expectations equilibrium, it is concluded that foreign investors are on average better informed than domestic investors about the future value of sek denominated bonds. The better information of foreign investors is shown to be related to both pure Swedish factors as well as international factors.
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Bibliographic InfoPaper provided by Sveriges Riksbank (Central Bank of Sweden) in its series Working Paper Series with number 86.
Length: 20 pages
Date of creation: 01 Jun 1999
Date of revision:
Bond prices; capital flows; foreign investors; informed investors; intrest rate determination;
Find related papers by JEL classification:
- E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
- G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
- G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
- G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
This paper has been announced in the following NEP Reports:
- NEP-ALL-2001-12-04 (All new papers)
- NEP-FMK-2001-12-04 (Financial Markets)
- NEP-IFN-2001-12-04 (International Finance)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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