A Signal of Imperfect Portfolio Capital Adjustments from the Relationship Between Yields of Domestic and Foreign Colombian Debt

Borradores de Economia
Número: 
216
Publicado: 
Clasificación JEL: 
C32, G14, G15
Palabras clave: 
yield, Interest Parity, capital mobility, nonlinearities

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In this paper we check the relationship between the yields of the Colombian bonds traded in the (secondary) internal market and the yields of the sovereign global securities for the sample period 1999-2001. The hypothesis we maintain is that, under the as