Bond market integration soars during crises, developed markets lead the way.
The article examines how different countries' bond markets are connected over time, especially during financial crises. By analyzing 38 markets, the researchers found that developed markets are becoming more integrated, while emerging markets show less integration. European markets, especially those in the Eurozone, are highly integrated. Longer-term bonds also contribute to increased market integration. During crises, market integration is even higher than expected.