Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 03, 2020 erstellt
Description:
We analyze the impact of portfolio flows reallocation triggered by switching recommendations of a financial advisory firm in the domestic government bond market of an inflation-targeting economy. We document significant price pressure in bond yields after portfolio switching recommendations. We analyze the main channels by which government yields are affected (the expectation and the term premium components) and trace their consequences on financing costs for households and firms. Our results suggest persistent changes in government yields, particularly in long-term inflation-linked bonds yields, triggered by changes in term premium component. Consistent with the relevance of inflation-linked bonds as the main benchmark rate for funding costs, we document an asymmetric and substantial impact on funding costs for firms (corporate bonds) and households (mortgages rates)