countries had -- de facto -- been perceived as a homogenous group with regard to the role of public debt for sovereign risk …

recipient central bank as the bearer of the credit risk. Second, from the perspective of the transmission of monetary policy, it … risk. We find support for these predictions using difference-in-difference empirical strategies that exploit the fact that … to dollar funding risk, only some dollar bonds are significantly traded by foreign banks, and only some banks have a …

for currency risk, liquidity risk, and term structure. Foreign-law bonds indeed carry significantly lower yields in … distress periods, and this effect rises as the risk of a sovereign default increases. These results indicate that, in times of …

reduction is mostly due to a decreasing risk component of southern bonds. In fact, once controlling for this implicit credit … risk reduction we find rather mild effects from portfolio rebalancing for all countries …