, McBrady also
finds that government benchmark bond markets appear
the least integrated of all. On the other hand, McBrady
finds that relatively short-term high-grade corporateEurobond markets appear even more integrated than
currency markets, suggesting that high-quality issuers
of relatively short-term international bonds – many of
which are major international banks and financial
institutions – may be the true ‘one-way arbitrageurs’ that
serve to integrate global bond and currency swap markets
in equilibrium.