Advances in Economics, Management and Political Sciences

- The Open Access Proceedings Series for Conferences


Proceedings of the 2nd International Conference on Business and Policy Studies

Series Vol. 16 , 13 September 2023


Open Access | Article

Research on the Interest Rate Risk Strategy of Bond Market

Zekang Li * 1
1 Hong Kong Metropolitan University

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 16, 65-70
Published 13 September 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Zekang Li. Research on the Interest Rate Risk Strategy of Bond Market. AEMPS (2023) Vol. 16: 65-70. DOI: 10.54254/2754-1169/16/20230978.

Abstract

Compared with stocks, bond investment can not only reduce relatively large risk losses, but also ensure that the investment status is healthy and stable. However, whether the product trend in the bond market can be used as a tool for monitoring economic conditions is a question worth pondering. This article’s main function is discussing why the bond market is useful and the influence and difference of bond’s maturity and interest rate for the economy and investor. Through the research and discussion of the article, the paper focused on the conclusion that the comparison of the interest rates of long-term bonds and short-term bonds in the bond market in the same period can reflect the overall economic situation of the market to a certain extent, and the significance of this conclusion is that, It can not only enable investors to observe the market trend through the interest rates of bonds of different maturities, and make choices for their next investment decisions, but also enhance the functionality of the financial market and strengthen the connection with the economic market.

Keywords

bond market, finance, interest rate, interest rate risk

References

1. Gilmore, C. G., Lucey, B. M., & Boscia, M. W. Movements in government bond markets: A minimum spanning tree analysis.

2. Chy, M., & Kyung, H. The effect of bond market on bank loan contracting.

3. Shigemi, Y., Kato, S., Soejima, Y., & Shimizu, T. Market Participants' Behavior and Pricing Mechanisms.

4. Yao, D., Sun, R., & Gao, Q. The network structure in the Chinese bond market.

5. Liu, F., Kong, D., Xiao, Z., Zhang, X., Zhou, A., & Qi, J. Effect of economic on the bond market under the im-pact of COVID-19.

6. Kadıoğlu, E., & Frömmel, M. Manipulation in the bond market and the role of investment funds: Evidence from an emerging market.

7. Wahidin, D., Akimov, A., & Roca, E. The impact of bond market development on economic growth.

8. Abuelfadl, M., & Yamani, E. Currency news and international bond markets. The North American Journal of Economics and Finance.

9. Pagnottoni, P., Spelta, A., Pecora, N., Flori, A., & Pammolli, F. Financial earthquakes: SARS-CoV-2 news shock the bond markets.

10. Tran, N., & Uzmanoglu, C. COVID-19, lockdowns, and the municipal bond market. Journal of Banking & Finance.

11. Bond market’s connection with the financial market. https://www.ft.com/content/2ea215eb-c359-4a72-830a-1ecdd575b969.

12. John D. Burger, Francis E. Warnock, and Veronica Cacdac Warnock. Bond market development in develop-ing Asia, ADB Economics Working Paper Series, no. 448, August 2015. https://www.adb.org/sites/default/files/publication/173190/ewp-448.pdf.

13. Indeed Editorial Team, What Is an Organizational Strategy and Why Does My Business Need One? June 23, 2021. https://www.indeed.com/career-advice/career-development/organizational-strate-gy#:~:text=An%20organizational%20strategy%20is%20a,goals%20and%20develop%20strategic%20plans.

14. Nick Lioudis, The Inverse Relationship Between Interest Rates and Bond Prices, May 16, 2022.https://www.investopedia.com/ask/answers/why-interest-rates-have-inverse-relationship-bond-prices/.

Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Authors who publish this series agree to the following terms:

1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.

2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.

3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open Access Instruction).

Volume Title
Proceedings of the 2nd International Conference on Business and Policy Studies
ISBN (Print)
978-1-915371-75-1
ISBN (Online)
978-1-915371-76-8
Published Date
13 September 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/16/20230978
Copyright
13 September 2023
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated