Battistini, Niccolò; Pagano, Marco; Simonelli, Saverio - Centro Studi di Economia e Finanza (CSEF) - 2013
Since 2008, euro-area sovereign yields have diverged sharply, and so have the corresponding CDS premia. At the same time, banks’ sovereign debt portfolios featured an increasing home bias. We investigate the relationship between these two facts, and its rationale. First, we inquire to what...