ideas: (1) to create multitranche "sovereign bond-backed securities" (SBBS), of which the senior tranche would constitute a … safe asset; (2) to create a senior, publicly owned financial intermediary that would issue a bond backed by a diversified … diversified pool of senior sovereign bonds ("multitranche national bond issuance"). Public attention (including public criticism …

that differences in bank funding costs help explain the varying appetite of banks for relatively high-yielding (and hence … match the return on their euro government bond portfolio with their own funding costs. In addition, prospects for a …

The euro crisis was fueled by the diabolic loop between sovereign risk and bank risk, coupled with cross-border flight …

relationship between bank solvency, on the one hand, and senior bond yields, term deposit rates and overnight deposit rates, on the …This paper investigates the relationship between bank funding costs and solvency for a large sample of euro area banks … other. The analysis finds a significant negative relationship between bank solvency and the different types of funding costs …

could potentially produce safe assets in sufficient quantities to replace euro area sovereign bond holdings in euro area … wealth fund is also likely to have the lowest impact on the structure and liquidity of national bond markets, while national …

simply repaying bank loans. Moreover, holdings of 'buy-and-hold' bond investors are large in aggregate but small for weaker …The rise of bond financing in EuropeUsing large panel data of public and private firms, this paper dissects the growth … of bond financing in the Euro Area through the lens of the cross-section of issuers. In recent years, the composition of …

protection selling in CDS, the effect being weaker when sovereign risk is high. Bank and country risk variables are mostly not … building a complete picture and understanding fully the economic drivers of the bank-sovereign nexus of risk …

protection selling in CDS, the effect being weaker when sovereign risk is high. Bank and country risk variables are mostly not … building a complete picture and understanding fully the economic drivers of the bank-sovereign nexus of risk …

This paper analyzes the causes of the sovereign debt crisis in the eurozone and examines the policy alternatives … national lines into a single unified European government bond (EGB) market that can have the depth, breadth and liquidity to … investors and wealth managers to use euro bond instruments as a tool for payment or transactions needs as well as short …

How does uncertainty affect the costs of raising finance in the bond market and via bank loans? Empirically, this paper … finds that heightened uncertainty is accompanied by an increase in corporate bond yields and a decrease in bank lending … the value of the lending relationship and lowers the lending rate. Bond investors demand compensation for the increased …