across countries while the junior tranche would absorb any sovereign default risk. Additional issuance of national GDP …

the sovereign risk is sufficiently high, low-capital banks reduce private lending to further increase their holdings of …

Euro area governments have committed to break the doom loop between bank risk and sovereign risk. But policymakers have …. Simulations highlight a tension in regulatory design between concentration and credit risk. An area-wide low-risk asset - created … risk. …

advantage of their higher risk-bearing capacity to gain exposure (via central bank liquidity) to the set of riskier sovereign … risk-weighted capital framework of banks. …

European banks. In this paper, we evaluate the possible effects of these constraints on risk and diversification in the … analysis. We then analyze the risk and diversification in the sovereign bond portfolios of the largest European banks and … country. Finally, we evaluate the effect of diversification requirements on the tail risk of sovereign bond portfolios and …