We provide an assessment of the determinants of the risk premium paid by non-financial corporations on long-term bonds. By looking at 5500 issues over the period 2005–2012, we find that in recent years the sovereign debt market turbulence has been a major driver of corporate risk. Compared...

The paper explores the role of expectations in second generation currency crises models, providing an explanation for sudden shifts in speculators' behaviour that trigger currency devaluations, even without any sizeable worsening of the fundamentals of the economy. By focusing on expectations,...