This paper focuses on how the European Central Bank's (ECB) monetary policies influenced non-financial firms. The paper's two main contributions are, first, to shed light on non-financial firms' decisions on leverage, and how the ECB's conventional and unconventional policies may have affected...

This paper investigates the 2020 pandemic-induced financial crisis in the European corporate bond market and the ECB’s QE (PEPP) effectiveness in resolving it. By analyzing credit (Z-spread) and liquidity risks (scaled bid-ask spread), we find that the crisis raised Z-spreads of ineligible and...