Options and futures on government bonds are the only exchange traded derivative contracts currently available to investors wishing to hedge portfolios of eurobonds. This study, forms sterling denominated eurobond portfolios and tests the hedging effectiveness, with respect to these portfolios,...

We investigate the predictable component of excess returns in German, Japanese, UK and US aggregate stock indices, finding evidence to suggest that the frequently documented predictable component in excess returns is predominantly due to a failure in previous research to consider risk.