The positive relationship between bank and sovereign credit risk in the Eurozone, the so-called sovereign-bank nexus, is seen as a major threat for the stability of the Eurozone. This paper explores potential bank-level and country-level drivers of this relationship. We find that banks' home...

In this paper, I explore the determinants of foreign bias in international portfolio investment focusing on a behavioral explanation. Specifically, I investigate whether investors having a stronger uncertainty aversion perceive a foreign country to be more unfamiliar than those with less such...

Aktive Fonds, passive ETFs und Index Fonds, sowie Einzeltitel machen den Großteil der Aktienallokation der meisten Investoren aus. Die Herausforderung für die Investoren beschränkt sich dabei jedoch nicht nur auf die Wahl des für sie passenden Produkttyps, sondern schließt auch die...

Credit rating agencies are frequently criticized for producing sovereign ratings that do not accurately reflect the economic and political fundamentals of rated countries. This article discusses how the home country of rating agencies could affect rating decisions as a result of political...