New Risk Management Study Findings Recently Were Reported by a Researcher at State University of New York (SUNY) (Trading Activity in the Corporate Bond Market: A SAD Tale of Macro-Announcements and Behavioral Seasonality?): Insurance – Risk Management

2024 JUN 05 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- New study results on risk management have been published. According to news reporting originating from New Paltz, New York, by NewsRx correspondents, research stated, “This study investigates the determinants of trading activity in the U.S. corporate bond market, focusing on the effects of Seasonal Affective Disorder (SAD) and macroeconomic announcements.”

Our news correspondents obtained a quote from the research from State University of New York (SUNY): “Employing the General-to-Specific (Gets) Autometrics methodology, we identify distinct behavioral responses between retail and institutional investors to SAD, noting a significant impact on retail trading volumes but not on institutional trading or bond returns. This discovery extends the understanding of behavioral finance within the context of bond markets, diverging from established findings in equity and Treasury markets. Additionally, our analysis delineates the influence of macroeconomic announcements on trading activities, offering new insights into the market’s reaction to economic news.”

According to the news reporters, the research concluded: “This study’s findings contribute to the broader literature on market microstructure and behavioral finance, providing empirical evidence on the interplay between psychological factors and macroeconomic information flow within corporate bond markets. By addressing these specific aspects with rigorous econometric techniques, our research enhances the comprehension of trading dynamics in less transparent markets, offering valuable perspectives for academics, investors, risk managers, and policymakers.”

For more information on this research see: Trading Activity in the Corporate Bond Market: A SAD Tale of Macro-Announcements and Behavioral Seasonality?. Risks, 2024,12(5). (Risks - http://www.mdpi.com/journal/risks). The publisher for Risks is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/risks12050080.

Our news editors report that more information may be obtained by contacting James J. Forest, Assistant Professor of Finance, School of Business Administration, State University of New York (SUNY) New Paltz, New Paltz, NY 12561, United States. Additional authors for this research include Ben S. Branch, Brian T. Berry.

ORCID is an identifier for authors and includes bibliographic information. The following is ORCID information for the authors of this research: James J. Forest (http://orcid.org/0000-0002-1765-1817), Ben S. Branch (http://orcid.org/0000-0003-0998-2293).

(Our reports deliver fact-based news of research and discoveries from around the world.)