Overshooting of sovereign emerging eurobond yields in the context of COVID-19

This paper illustrates the phenomenon of overshooting yields on eurobonds issued by emerging and developing countries in the context of COVID-19. Using panel data from 48 emerging and developing countries, the results show that daily reports of confirmed cases have led to increases in yields and announcements of international creditor assistance to developing and emerging countries, which have calmed investor concerns.

Automated summary

This paper explores the overshooting yields on eurobonds issued by emerging and developing countries in the context of COVID-19. The results show that increases in confirmed cases lead to higher yields, while announcements of international creditor assistance calm investor concerns.