. In particular, the pass-through of global benchmark rates to interest rates on sovereign bonds is about 70 percent. The …

This paper introduces fiscal policy in a model of sovereign risk spreads ("spreads"). Using panel data from emerging … market countries, we find that reductions in public expenditure are a more powerful tool for reducing spreads than increases … in revenues. Specifically, cuts in current spending lower spreads by more than cuts in investment spending, and they also …

spreads). It also investigates the extent to which the practice by rating agencies and banks of not rating companies higher …-currency-denominated corporate bonds. The main findings are: (i) sovereign risk appears to be the single most important determinant of corporate … default premia in South Africa; (ii) the sovereign ceiling (in local-currency terms) does not apply in the spreads of the …

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 …