Showing 1 - 10 of 277
In March 2016, the ECB announced the extension of the asset purchase programme (APP) to investment-grade bonds issued by non-financial corporations established in the euro area. Following the announcement of this new programme (known as the CSPP), there was a significant fall in the interest...
Persistent link: https://www.econbiz.de/10012926299
We analyse how the European Central Bank's purchases of corporate bonds under its Corporate Sector Purchase Programme (CSPP) affected the financing of Spanish non-financial firms. We first document that the announcement of the CSPP in March 2016 raised significantly the firms' propensity to...
Persistent link: https://www.econbiz.de/10012952905
In March 2016, the ECB announced the extension of the asset purchase programme (APP) to investment-grade bonds issued by non-financial corporations established in the euro area. Following the announcement of this new programme (known as the CSPP), there was a significant fall in the interest...
Persistent link: https://www.econbiz.de/10012929450
We analyse the extent to which prices in the sovereign credit default swap (CDS) and bond markets reflect the same information on credit risk in the context of the European Monetary Union. The empirical analysis is based on the theoretical equivalence relation that should hold between the CDS...
Persistent link: https://www.econbiz.de/10013114370
We examine the effect of the short-selling ban implemented in 2011 on Spanish stocks on the level of risk in the banking sector. Before the ban, short positions are found to be positive and significantly related to the creditworthiness of medium-sized banks, less internationally diversified and...
Persistent link: https://www.econbiz.de/10013065927
Since June 2014 the European Central Bank (ECB) has placed its deposit facility interest rate (DFR) at negative levels. Against this background, the question arises as to whether maintaining negative interest rates over a prolonged period can adversely affect credit institutions' net interest...
Persistent link: https://www.econbiz.de/10012889729
What is the impact of negative interest rates on bank lending and risk-taking? To answer this question we study the changes in lending policies using the Euro area Bank Lending Survey and the Spanish Credit Register. Banks whose net interest income is adversely affected by negative rates are...
Persistent link: https://www.econbiz.de/10012899513
We analyse the extent to which prices in the sovereign credit default swap (CDS) and bond markets reflect the same information on credit risk in the context of the European Monetary Union. The empirical analysis is based on the theoretical equivalence relation that should hold between the CDS...
Persistent link: https://www.econbiz.de/10012868898
What is the long-term impact of negative interest rates on bank lending? To answer this question we construct a unique summary measure of negative rate exposure by individual banks based on exclusive survey data, and couple it with the credit register of Spain to identify this impact on the...
Persistent link: https://www.econbiz.de/10012851276
We examine the effect of the short-selling ban in 2011 on Spanish stocks on the level of risk in the banking sector. Before the ban, short positions were found to be positive and significantly related to the creditworthiness of medium-sized banks, these being generally less internationally...
Persistent link: https://www.econbiz.de/10013053141