... reduction.8 ConclusionThis paper has demonstrated the gains to US investor of holding foreign corporate bonds. Jointly, the inclusion of corporate bonds from Australia, Canada, Europe, Japan, and ... US bond markets, I also control for the interactioneffect between US corporate bond returns and the foreign corporate bond returns. Therefore, toexplore the sensitivity of Yankee bonds to their ... country, the volatility of the long maturity bonds are higher. Particularly, in the case of the US, the annualized standard deviation of the short term corporate bonds is 3.68%, while the longmaturity...