, cumulatively, due to low bond yields since the onset of the Euro crisis. In order to determine the contribution of the "flight to … quality" to this sum, we define the flight to quality as a factor which has caused German bond yields and crisis country bond …

, which is more pronounced for higher maturities and when risk aversion proxied by bond market volatility is high. Going …

Expectations of risky bond payments are unobservable and recovery rates for sovereigns are hard to estimate because …