We estimate the pricing of sovereign risk for sixty countries based on fiscal space (debt/tax; deficits/tax) and other … and economically important determinants of market-based sovereign risk. Although the explanatory power of fiscal space … emergence of TED spread as a key pricing factor. However, risk-pricing of the South-West Eurozone Periphery countries is not …

shows how several ways in which the actual world of international lending departs from these conditions give both lenders …

which financial markets were trying to allocate risk between heterogeneous agents when productive investment opportunities … are scarce. We begin by showing how heterogeneity in terms of risk tolerance can cause financial markets to propagate …

credit risk was increasing. Following the failure of Lehman Brothers, the interdependencies briefly increased to a new high … counterparty risk. After Lehman's failure, the prospect of global recession became imminent, auguring the further deterioration of …

coordination when markets price sovereign default risk, and put pressure on governments for implementing budget consolidation …