Konferenzbeitrag
On Creditor Seniority and Sovereign Bond Prices in Europe
The recent increase of interest rate spreads in Europe and their apparent detachment from underlying fundamental variables has generated a debate on multiple equilibria in the sovereign bond market (see De Grauwe and Ji (2012)). We critically evaluate this hypothesis, by pointing towards an alternative explanation: the increasing share of senior lenders (IMF, ECB, EFSF, etc.) in the total outstanding government debt of countries in crisis. We illustrate the close relationship between senior tranche lending including Target2 balances and recent developments in the sovereign bond market, both graphically and in a formal regression analysis.
- Language
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Englisch
- Bibliographic citation
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Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2013: Wettbewerbspolitik und Regulierung in einer globalen Wirtschaftsordnung - Session: Bond and Stock Prices ; No. A21-V3
- Classification
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Wirtschaft
International Lending and Debt Problems
Asset Pricing; Trading Volume; Bond Interest Rates
Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
- Event
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Geistige Schöpfung
- (who)
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Westermann, Frank
Steinkamp, Sven
- Event
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Veröffentlichung
- (who)
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
- (where)
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Kiel und Hamburg
- (when)
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2013
- Handle
- Last update
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10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Konferenzbeitrag
Associated
- Westermann, Frank
- Steinkamp, Sven
- ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
Time of origin
- 2013
Other Objects (12)
On creditor seniority and sovereign bond prices in Europe
On creditor seniority and sovereign bond prices in Europe
Foreign Law Bonds: Can They Reduce Sovereign Borrowing Costs?
The Joint Dynamics of Sovereign Ratings and Government Bond Yields
ECB Interventions in Distressed Sovereign Debt Markets: The Case of Greek Bonds
The Impact of Political Risk on Sovereign Bond Spreads - Evidence from Latin America
Sovereign Bond Market Reactions to Fiscal Rules and No-Bailout Clauses The Swiss Experience
Financial Crisis, Creditor-Debtor Conflict, and Political Extremism
Fighting sovereign debt crises worldwide
Banks' holdings of risky sovereign bonds in the absence of the nexus: Yield seeking with central bank funding or de-risking?
What Drives the Sovereign-Bank Nexus?
The Home Bias in Sovereign Ratings
On creditor seniority and sovereign bond prices in Europe
On creditor seniority and sovereign bond prices in Europe
Foreign Law Bonds: Can They Reduce Sovereign Borrowing Costs?
The Joint Dynamics of Sovereign Ratings and Government Bond Yields
ECB Interventions in Distressed Sovereign Debt Markets: The Case of Greek Bonds
The Impact of Political Risk on Sovereign Bond Spreads - Evidence from Latin America
Sovereign Bond Market Reactions to Fiscal Rules and No-Bailout Clauses The Swiss Experience
Financial Crisis, Creditor-Debtor Conflict, and Political Extremism
Fighting sovereign debt crises worldwide
Banks' holdings of risky sovereign bonds in the absence of the nexus: Yield seeking with central bank funding or de-risking?
What Drives the Sovereign-Bank Nexus?
The Home Bias in Sovereign Ratings
On creditor seniority and sovereign bond prices in Europe
On creditor seniority and sovereign bond prices in Europe
Foreign Law Bonds: Can They Reduce Sovereign Borrowing Costs?
The Joint Dynamics of Sovereign Ratings and Government Bond Yields
ECB Interventions in Distressed Sovereign Debt Markets: The Case of Greek Bonds
The Impact of Political Risk on Sovereign Bond Spreads - Evidence from Latin America
Sovereign Bond Market Reactions to Fiscal Rules and No-Bailout Clauses The Swiss Experience
Financial Crisis, Creditor-Debtor Conflict, and Political Extremism
Fighting sovereign debt crises worldwide
Banks' holdings of risky sovereign bonds in the absence of the nexus: Yield seeking with central bank funding or de-risking?
What Drives the Sovereign-Bank Nexus?