Leading into a debt crisis, interest rate spreads on sovereign debt rise before the economy experiences a decline in … estimation, a news shock has a larger contemporaneous impact on sovereign credit spreads than a comparable shock to labor … credit markets, and thus face lower yield spreads while increasing the amount of debt …

This paper studies the emergence of sovereign bond yield spreads in the Eurozone prior to the financial crisis. While … spreads were close to zero in European government debt markets until the mid-2000s, they have persistently widened since then … Eurosystem's move from unconditional to conditional collateral eligibility of sovereign bonds, as part of the 2005 Single List …