ANALYZING CREDIT AND EQUITY LINKAGE WITHIN A DYNAMIC CAUSALITY PARADIGM

Authors

  • Muhammad Ali Faisal* Institute of Business Management, Korangi Creek, Karachi, 75190, Sindh, Pakistan
  • Muhammad Kashif Institute of Business Management, Korangi Creek, Karachi, 75190, Sindh, Pakistan.
  • Jamil Ahmed SZABIST, Clifton, Karachi, 75600, Sindh,

DOI:

https://doi.org/10.64105/jbmr.04.03.498

Abstract

This paper looks upon a potential causal connection between credit and equity markets for the period 1985-2023. In particular, we aim to check how corporate credit spread and S&P 500 index evolved during bullish and bearish trends and how this connection is linked to overall economic uncertainty. In our pursuit, we utilize a recently developed dynamic causality framework. Our results suggest that during the bear market, the interaction between corporate bonds and the stock market changed significantly.

Keywords: credit, equity, S&P 500, economic uncertainty, dynamic causality

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Published

2025-08-05

Issue

Vol. 4 No. 3 (2025): Journal of Business and Management Research (JBMR)

Section

Articles

How to Cite

ANALYZING CREDIT AND EQUITY LINKAGE WITHIN A DYNAMIC CAUSALITY PARADIGM. (2025). Journal of Business and Management Research, 4(3), 406-418. https://doi.org/10.64105/jbmr.04.03.498