Understanding the Stock-Bond Nexus: the Evidence from COVID-19 Period

Student: Melnik Anastasia

Supervisor: Svetlana Bryzgalova

Faculty: International College of Economics and Finance

Educational Programme: Financial Economics (Master)

Year of Graduation: 2020

Understanding the connection between stock and bond returns helps investors to create a better portfolio. This paper examines the stock-bond nexus focusing on economic uncertainty effect. First, we provide a review of different perspectives on the stock-bond correlation and cover economic variables that have been commonly used in the literature as underlying factors of the stock-bond relation. Then we investigate in detail the economic uncertainty as a driving force of the correlation. Finally, we conduct empirical research on the stock-bond correlation during the pandemic period of 2020 in the U.S. and provide a discussion on results.

Student Theses at HSE must be completed in accordance with the University Rules and regulations specified by each educational programme.

Summaries of all theses must be published and made freely available on the HSE website.

The full text of a thesis can be published in open access on the HSE website only if the authoring student (copyright holder) agrees, or, if the thesis was written by a team of students, if all the co-authors (copyright holders) agree. After a thesis is published on the HSE website, it obtains the status of an online publication.

Student theses are objects of copyright and their use is subject to limitations in accordance with the Russian Federation’s law on intellectual property.

In the event that a thesis is quoted or otherwise used, reference to the author’s name and the source of quotation is required.

Search all student theses