In this paper, Dr. Williams and his coauthors discuss how negative news can "spillover" from one market to the next. More specifically, the paper address how news from near-defaulting Eurozone countries (i.e. the PIIGS: Portugal, Italy, Ireland, Greece, and Spain) can impact those countries' bond markets and then, through an information-based channel, impact those countries' stock markets.

Their results are of interest to academics and practitioners alike in that markets are generally thought of as being linked only by "fundamental information" within that market alone. Dr. Williams' recent paper shows that "excess" news spillovers may occur, especially when markets are highly risk adverse to that information.