Broker-dealer leverage has recently proven to be strongly procyclical, exhibiting impressive explanatory power for a large cross-section of asset returns in the US. In this paper we add empirical evidence to this finding, showing that European and German broker-dealers actively manage their...

With the lifting of remaining capital controls inside the EU in 1990, an essential step towards EMU was taken. This raises the questions of whether on the one hand there is an observable convergence of interest rates inside the EU and on the other if alongside this financial integration, EMU...