Project Description: to be written
Project Description: to be written
Project Description: I ask whether the secular decline in long-term interest rates in advanced economies reflects slow-moving structural forces or is concentrated in narrow monetary-policy announcement windows. Extending Hillenbrand’s (2025) event-window design, I construct three-day windows around FOMC and domestic policy decisions for six advanced economies over 1997–2024 and analyze daily changes in 10-year local-currency sovereign yields. I document pronounced heterogeneity: some countries’ long rates react strongly to FOMC news, while others respond weakly to both U.S. and domestic announcements. Pooling FOMC windows, declines in U.S. 10-year Treasury yields systematically coincide with declines in foreign long yields, consistent with a global bond-market factor tied to U.S. policy. I further relate spillover strength to FX bid–ask spreads, finding larger spillovers when spreads are wider.
Final Project for the course "Research Module in Financial Economics"
Project Description: I demonstrate that European banks increased lending during the COVID-19 pandemic with countercyclical capital buffer (CCyB) releases. Amidst heterogeneous economic shock due to the pandemic, national authorities started adjusting CCyB rates as of March 2020. Employing a difference-in-differences strategy, I conjecture that countries that have higher initial mortality rates are more likely to increase the supply of loans with declining buffer rates. The results underscore that the adjustments of CCyB rates led to the intended outcome of increasing loan supply, particularly in countries that faced a more severe onset of the pandemic.