@techreport{Oehler2000Institutional,
abstract = {Recent research has shown that institutional herding is a relevant phenomenon in stock
markets. Do institutional investors also follow each other in bond markets? This paper focuses
on the German bond market and uses data from 57 German mutual funds that invest mainly in
DM-denominated bonds, which represents 71% of the total market volume. Due to the variety
and large number of bonds that exist, we do not expect mutual funds to herd with regard to
separate bonds. We believe instead that bonds with the same characteristics such as interest
rate, maturity, collateral, or issuer are considered to be equivalent by institutional investors.
Consequently, we construct "bond groups" consisting of similar bonds and analyze herding at
a "bond group" level. Our results indicate that there is strong evidence of herding, albeit it is
weaker than in stock markets. Further analysis suggests that mutual funds do not place an
equal weight on different bond characteristics. Nominal interest rates appear to be most
important in the bond selection process.},
author = {Andreas Oehler and George Goeth-Chi Chao},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {G21; D7; 330; Mutual Funds; Herding; Imitation; Coordination; Behavioral Finance; Rentenmarkt; Institutioneller Anleger; Investmentfonds; Anlageverhalten; Sch\"{a}tzung; Deutschland; herding behavior},
language = {eng},
number = {13},
title = {Institutional Herding in Bond Markets},
type = {Bank- und Finanzwirtschaftliche Forschung: Diskussionsbeitr\"{a}ge des Lehrstuhls f\"{u}r Betriebswirtschaftslehre, insbesondere Finanzwirtschaft, Universit\"{a}t Bamberg},
url = {http://hdl.handle.net/10419/22491},
year = {2000}
}
