Researchers at University of Sousse Release New Data on Risk Management (Heterogeneous Dependence on Global Financial Conditions: Evidence from Emerging Equity Markets): Insurance – Risk Management

Insurance Daily News

2026 AUG 06 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Fresh data on risk management are presented in a new report. According to news originating from Sousse, Tunisia, by NewsRx correspondents, research stated, “This study investigates the transmission of global risk sentiment and U.S. monetary conditions across emerging equity markets. Using Multiple Wavelet Coherence (MWC) and Quantile-on-Quantile Regression (QQR) over January 2016-December 2025, the analysis examines time-frequency co-movements and asymmetric linkages between emerging market equity indices, the CBOE Volatility Index (VIX), and the U.S.”

The news editors obtained a quote from the research from University of Sousse: “Treasury yield spread (T10Y3M). The results reveal substantial heterogeneity across markets. China, Russia, Turkey, Mexico, Egypt, and South Africa exhibit stronger long-run synchronization with external financial conditions. Saudi Arabia and Nigeria display more episodic exposure to external shocks. India, Brazil, Indonesia, and the United Arab Emirates represent intermediate cases characterized by recurrent but less persistent linkages. The findings suggest that global risk sentiment and U.S. monetary conditions affect emerging markets differently across investment horizons and periods of financial stress.”

According to the news editors, the research concluded: “The robustness analysis indicates that synchronization patterns became fragmented following the tightening cycle and rising geopolitical tensions after 2022, with less uniform spillover transmission across regions. The analysis highlights the importance of nonlinear and time-varying mechanisms in shaping financial spillovers across emerging equity markets.”

For more information on this research see: Heterogeneous Dependence on Global Financial Conditions: Evidence from Emerging Equity Markets. Risks, 2026,14(7):147. (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/risks14070147.

Our news journalists report that additional information may be obtained by contacting Sana Braiek, Department of Economics and Quantitative Methods, University of Sousse, Sousse 4000, Tunisia. Additional authors for this research include Catalin Gheorghe, Oana Panazan, Ahmed Jeribi.