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 …

explanation is that due to higher liquidity the most recently issued bond tends to trade at a premium to previously issued bonds …, liquidity has commonality across countries in the expected direction. However, the paper documents a novel finding that … questions the standard view of liquidity. Under certain conditions, especially related to credit deterioration and flight to …

We examine the dynamic interconnection between sovereign credit and liquidity risks in ten euro area countries at the … risk to liquidity risk. This indicator is time-dependent, detecting some episodes where it goes from liquidity risk to … monetary policy shocks and economic policy uncertainty increase the probability of transmission from liquidity risk to credit …