the presence of institutional investors affects volatility and liquidity in secondary bank bond markets. We find that non …-bank financial intermediaries, in particular money market funds (MMFs), have a positive impact on secondary bank bond markets …% of the notional amount in the secondary market of a representative euro area bank bond. The effect is relative to the …

The rise of bond financing in EuropeUsing large panel data of public and private firms, this paper dissects the growth … of bond financing in the Euro Area through the lens of the cross-section of issuers. In recent years, the composition of … bond issuers has shifted, with the entry of many smaller and riskier issuers. New issuers invest and grow, instead of …

A safe asset is of high credit quality, retains its value in bad times, and is traded in liquid markets. We show that … bonds issued by the European Union (EU) are widely considered to be of high credit quality, and that their yield spread over …

cover pool and the payment structure. They offer unified risk metrics for the European covered bond universe, which ensures … comparability across covered bonds issued by different issuers and rated by different credit rating agencies. The availability of …

We study what makes government bonds a safe asset. Building on a sample of monthly changes in government bond yields in … changes in global risk (VIX). We find that inertia (whether the bond behaved as a safe asset in the past) and good … institutions foster a safe asset status, while the size of the debt market is also significant, reflecting the special role of the …

subordinated bond yield spreads over senior unsecured bonds, and links the bond yields developments with the characteristics of the … relevance of the Tier 1 capital ratio for making subordinated debt safer, while markets price the higher risk of banks with less … play a key role in explaining bond spreads. Interestingly, after the introduction of the new bail-in framework, there is a …

maturity races, information sensitivity, risk-intolerant debt and induced runs reinforce the liquidity risk externality … associated with banking, and have significant implications for research on credit cycles as well as for prudential policy. …

In this paper, we study the dynamics and drivers of sovereign bond yields in euro area countries using a factor model … mechanism of bond yields. Our key contribution is exploring both the global and the local dimensions of bond yield determinants … periphery euro area bond yields from the core countries yields following the financial crisis and the scope of their subsequent …

Does leverage drive investor ows in bond mutual funds? Leverage can increase fund returns in good times, but it can … also magnify investors' losses and their response to bad performance. We study bond fund ows to provide new evidence for … findings suggest that leverage amplifies fragility in the bond mutual fund sector. …