JOURNAL ARTICLE

Flight to Quality and Return to Risk: Foreign Investment Patterns in US Securities Amidst COVID-19.

Published In: Journal of Wealth Management, 2025, v. 28, n. 1. P. 61 1 of 3
Database: Business Source Ultimate 2 of 3
Authored By: Nippani, Srinivas; Azim Khan, Sharier; Malhotra, Davinder 3 of 3

Abstract

This article examines the impact of the COVID-19 pandemic on foreign investments in US long-term securities and its implications for market participants. Findings reveal a divergence in investment preferences between foreign officials and private residents, with officials favoring Treasury bonds and private residents leaning toward corporate stocks and bonds. During the pandemic, there was a notable shift toward safer assets like Treasury bonds, followed by a resurgence in stock market investments post-vaccine availability. Reinforcing the theory of a flight to quality during crises, the article indicates a gravitation toward safer assets like Treasuries, with subsequent returns to riskier assets like stocks. [ABSTRACT FROM AUTHOR]

Additional Information

Source:Journal of Wealth Management. 2025/06, Vol. 28, Issue 1, p61
Document Type:Article
Subject Area:Business and Management
Publication Date:2025
ISSN:1534-7524
DOI:10.3905/jwm.2025.1.267
Accession Number:185259936
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