Economically irrational pricing of nineteenth-century British government bonds

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Economically irrational pricing of nineteenth century British government bonds

British government bonds formed the deepest, most liquid, and most transparent financial market of the 19th century. This paper shows that those bonds had long periods, extending over decades, of anomalous behavior, in which Consols, the largest and best known of these instruments, were noticeably overpriced relative to equivalent securities which offered the same interest rate and the same gua...

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Economically irrational pricing of 19th century British government bonds

British government bonds formed the deepest, most liquid, and most transparent financial market of the 19th century. This paper shows that those bonds had long periods, extending over decades, of anomalous behavior, in which Consols, the largest and best known of these instruments, were noticeably overpriced relative to equivalent gilts which offered the same interest rate and the same guarante...

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Supplementary material for “Economically irrational pricing of 19th century British government bonds”

This manuscript presents a variety of materials supplementing the paper “Economically irrational pricing of 19th century British government bonds.” The motivation, background, and notation are all explained in that manuscript. This one does not form a coherent work by itself. The first three sections illustrate how the British establishment viewed gilts mispricing around 1870, and how the marke...

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ژورنال

عنوان ژورنال: Financial History Review

سال: 2016

ISSN: 0968-5650,1474-0052

DOI: 10.1017/s0968565016000172