Sensitivity of Stock Returns to Changes in the Term Structure of Interest Rates — Evidence from the German Market

Czaja MG, Scholz H (2007)


Publication Language: English

Publication Type: Book chapter / Article in edited volumes

Publication year: 2007

Publisher: Springer Berlin Heidelberg

Edited Volumes: Operations Research Proceedings 2006

City/Town: Berlin

Book Volume: IX

Pages Range: 305 - 310

ISBN: 978-3-540-69995-8

DOI: 10.1007/978-3-540-69995-8_50

Abstract

For a long time, interest rates have been considered one of the macroeconomic factors determining stock returns. The role of interest rates in the return generating process of stocks has therefore been extensively investigated in general, but particularly so with regard to financial institutions, which are often deemed to be more sensitive to changes in interest rates than stocks from other industries. Generally, this specific sensitivity has been attributed to i.) the predominant role of financial (i.e. nominal) assets and liabilities on the balance sheets of financial intermediaries and ii.) the maturity transformation performed especially by depository institutions and the resulting maturity mismatch of assets and liabilities.

Authors with CRIS profile

How to cite

APA:

Czaja, M.-G., & Scholz, H. (2007). Sensitivity of Stock Returns to Changes in the Term Structure of Interest Rates — Evidence from the German Market. In Operations Research Proceedings 2006. (pp. 305 - 310). Berlin: Springer Berlin Heidelberg.

MLA:

Czaja, Marc-Gregor, and Hendrik Scholz. "Sensitivity of Stock Returns to Changes in the Term Structure of Interest Rates — Evidence from the German Market." Operations Research Proceedings 2006. Berlin: Springer Berlin Heidelberg, 2007. 305 - 310.

BibTeX: Download