Horvath, Balint; Huizinga, Harry - C.E.P.R. Discussion Papers - 2011
On May 9, 2010 euro zone countries announced the creation of the European Financial Stability Facility as a response to … the sovereign debt crisis. This paper investigates the impact of this announcement on bank share prices, bank CDS spreads … CDS spreads. The combined gains of bank debt holders and shareholders exceed the increase in the value of their sovereign …