Being a systemically important financial institution may lead to lower financing costs, often referred to as a "borrowing subsidy". Existing studies on determining financing subsidies are limited and have several shortcomings: they either use ordinal scaled ratings to measure the rating bonus of...

This paper analyzes by using a simple theoretical model and thereafter testing empirically the differences between Euro- and US-Dollar nominated sovereign bonds of euro-area countries during the euro-crisis and concludes that the probability of collapse of the Euro(-currency) has a significant...