ideas: (1) to create multitranche "sovereign bond-backed securities" (SBBS), of which the senior tranche would constitute a … safe asset; (2) to create a senior, publicly owned financial intermediary that would issue a bond backed by a diversified … diversified pool of senior sovereign bonds ("multitranche national bond issuance"). Public attention (including public criticism …

that differences in bank funding costs help explain the varying appetite of banks for relatively high-yielding (and hence … match the return on their euro government bond portfolio with their own funding costs. In addition, prospects for a …

simply repaying bank loans. Moreover, holdings of 'buy-and-hold' bond investors are large in aggregate but small for weaker …The rise of bond financing in EuropeUsing large panel data of public and private firms, this paper dissects the growth … of bond financing in the Euro Area through the lens of the cross-section of issuers. In recent years, the composition of …

The euro crisis was fueled by the diabolic loop between sovereign risk and bank risk, coupled with cross-border flight …

From 2010 to 2012, the relation between bank stock returns from European Union (EU) countries and the returns on …

-performing loans (NPLs) on bank cost of capital, credit and liquidity creation in the Eurozone. Empirical results confirm the model …-term. Moreover, the increased cost of capital reduces credit and liquidity creation, and the more so the less capitalized is the bank …

This paper offers two new explanations for banks' home bias in government bond holdings: a sovereign-based rating cap … on corporates and the existence of a ‘bank tax'. These are complementary to the four explanations offered in the … (ESBies) by banks in low-rated countries. Bank regulations such as constraints on large exposure or risk-based capital on …

protection selling in CDS, the effect being weaker when sovereign risk is high. Bank and country risk variables are mostly not … building a complete picture and understanding fully the economic drivers of the bank-sovereign nexus of risk …

protection selling in CDS, the effect being weaker when sovereign risk is high. Bank and country risk variables are mostly not … building a complete picture and understanding fully the economic drivers of the bank-sovereign nexus of risk …

We use administrative and supervisory data at the bank and loan level to investigate the impact of the introduction of … covered bonds on the composition of bank balance sheets and bank risk. Covered bonds, despite being collateralized by … mortgages, lead to a shift in bank lending from mortgages to corporate loans. Young and low-rated firms in particular receive …