We study the dynamics of risk premiums on the German bond market, employing no-arbitrage term-structure models with … specification analisys based on a new canonical representation for this class of models. We find that risk premiums display a …

We find evidence of a bank lending channel for the euro area operating via bank risk. Financial innovation and the new … ways to transfer credit risk have tended to diminish the informational content of standard bank balance-sheet indicators …. We show that bank risk conditions, as perceived by financial market investors, need to be considered, together with the …