Global Risk Aversion and the Term Premium Gap in Emerging Market Economies

Puntos clave

• Term premium gaps are influenced by levels of global risk aversion, affecting emerging market economies' financial stability.
• The study finds that heightened global risk aversion correlates with a notable increase in term premium gaps.
• Observational analysis focused on emerging markets, analyzing economic indicators relevant to term premium shifts.
• The findings suggest emerging economies may face increased financial volatility depending on global risk attitudes.