is most needed. We examine bond correlation using a broad sample of US corporate bonds. We find bond correlation to be … higher during the financial crisis in 2008. Increased bond correlation results from higher correlation between corporate bond … risk factors. Risk factor correlation increases when investor sentiment worsens. This suggests that corporate bond …

its stocks. Liquidity risk is an important component in China’s corporate bond spreads. In this paper, we propose a … bond market. The Monte Carlo simulation technique is used to quantify the impact on the liquidity premium of various … and indirectly through its influence on a bond’s liquidity. …