simply repaying bank loans. Moreover, holdings of 'buy-and-hold' bond investors are large in aggregate but small for weaker …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 …

-linked sovereign bond (ILB) yields of Germany, France and Italy. I identify this effect from the difference of breakeven rates from …

rebalance towards bonds issued by non-EA deposit taking corporations. Other bond and mixed funds also tend to rebalance towards …

recourse to central bank finance is rather limited and does not affect the risk-taking behaviour of banks in a non … capitalised banks, a kind of "hidden moral suasion" or "home-biased" gambling for resurrection to actively push the sovereign-bank …

government debt raises sovereign risk and in turn generates potential bank losses via their (sovereign) bond holdings. Hence, an …We propose a simple model that captures the link between bank and sovereign credit risk. It allows evaluating policy … framework based on detailed actual bank balance sheets and test the model on 35 large EU banking groups, across 7 European …

particular, we show that being a weakly capitalized bank is not related to higher holdings of domestic sovereign debt. While a … strong link is present between central bank liquidity support and sovereign holdings, opportunistic strategies or reach … advantage of their higher risk-bearing capacity to gain exposure (via central bank liquidity) to the set of riskier sovereign …

banking sectors to domestic government debt, thus strengthening or weakening the sovereign-bank nexus. To do so, we construct … banks' exposure to domestic sovereign bonds in the periphery countries and thus deepens the sovereign-bank nexus. By … contrast, banks in the core countries expand their loan portfolios, rather than adjusting their domestic sovereign bond …