IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-030-66340-7_19.html
   My bibliography  Save this book chapter

Large-Scale Asset Purchases and Activity in the Primary and Secondary Share and Bond Markets

In: Achieving Price, Financial and Macro-Economic Stability in South Africa

Author

Listed:
  • Nombulelo Gumata

    (South African Reserve Bank)

  • Eliphas Ndou

    (South African Reserve Bank)

Abstract

Do large-scale asset purchases affect activity in the primary and secondary share and bond markets? Evidence in this chapter shows that the primary and secondary bond and share market activity indicators increase in response to positive South African Reserve Bank (SARB) asset growth shocks. Furthermore, the results indicate that incremental positive shocks to SARB asset growth exert asymmetric effects on selected primary and secondary market share and bond market indicators. In addition, we establish that SARB asset growth propagates the effects of positive manufacturing production growth shocks to activity in the primary and secondary share markets. The two-year Corporate Default Swap (CDS) spreads and the yield on the Eskom bond decline in response to positive SARB asset growth shocks, whilst the bond market capitalisation and liquidity increase. On the other hand, positive shocks to SARB asset growth loosen the credit conditions and this is transmitted to increases in the manufacturing output growth.

Suggested Citation

  • Nombulelo Gumata & Eliphas Ndou, 2021. "Large-Scale Asset Purchases and Activity in the Primary and Secondary Share and Bond Markets," Springer Books, in: Achieving Price, Financial and Macro-Economic Stability in South Africa, chapter 0, pages 299-312, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-66340-7_19
    DOI: 10.1007/978-3-030-66340-7_19
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-3-030-66340-7_19. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.