Matches in SemOpenAlex for { <https://semopenalex.org/work/W3122851554> ?p ?o ?g. }
Showing items 1 to 60 of
60
with 100 items per page.
- W3122851554 abstract "We show that financial sector bailouts and sovereign credit risk are intimately linked. A bailout benefits the economy by ameliorating the under-investment problem of the financial sector. However, increasing taxation of the non-financial sector to fund the bailout may be inefficient since it weakens its incentive to invest, decreasing growth. Instead, the sovereign may choose to fund the bailout by diluting existing government bondholders, resulting in a deterioration of the sovereign's creditworthiness. This deterioration feeds back to the financial sector, reducing the value of its guarantees and existing bond holdings as well as increasing its sensitivity to future sovereign shocks. We provide empirical evidence for this two-way feedback between financial and sovereign credit risk using data on the credit default swaps (CDS) of the Eurozone countries and their banks for 2007-11. We show that the announcement of financial sector bailouts was associated with an immediate, unprecedented widening of sovereign CDS spreads and narrowing of bank CDS spreads; however, post-bailouts there emerged a significant co-movement between bank CDS and sovereign CDS, even after controlling for banks' equity performance, the latter being consistent with an effect of the quality of sovereign guarantees on bank credit risk." @default.
- W3122851554 created "2021-02-01" @default.
- W3122851554 creator A5003597161 @default.
- W3122851554 creator A5018386908 @default.
- W3122851554 creator A5050204078 @default.
- W3122851554 date "2011-01-01" @default.
- W3122851554 modified "2023-10-03" @default.
- W3122851554 title "A Pyrrhic Victory? Bank Bailouts and Sovereign Credit Risk" @default.
- W3122851554 doi "https://doi.org/10.2139/ssrn.2061052" @default.
- W3122851554 hasPublicationYear "2011" @default.
- W3122851554 type Work @default.
- W3122851554 sameAs 3122851554 @default.
- W3122851554 citedByCount "22" @default.
- W3122851554 countsByYear W31228515542012 @default.
- W3122851554 countsByYear W31228515542013 @default.
- W3122851554 countsByYear W31228515542014 @default.
- W3122851554 countsByYear W31228515542015 @default.
- W3122851554 countsByYear W31228515542016 @default.
- W3122851554 crossrefType "journal-article" @default.
- W3122851554 hasAuthorship W3122851554A5003597161 @default.
- W3122851554 hasAuthorship W3122851554A5018386908 @default.
- W3122851554 hasAuthorship W3122851554A5050204078 @default.
- W3122851554 hasBestOaLocation W31228515542 @default.
- W3122851554 hasConcept C10138342 @default.
- W3122851554 hasConcept C144133560 @default.
- W3122851554 hasConcept C17744445 @default.
- W3122851554 hasConcept C178350159 @default.
- W3122851554 hasConcept C186229450 @default.
- W3122851554 hasConcept C199539241 @default.
- W3122851554 hasConcept C2779220109 @default.
- W3122851554 hasConcept C73283319 @default.
- W3122851554 hasConcept C94625758 @default.
- W3122851554 hasConceptScore W3122851554C10138342 @default.
- W3122851554 hasConceptScore W3122851554C144133560 @default.
- W3122851554 hasConceptScore W3122851554C17744445 @default.
- W3122851554 hasConceptScore W3122851554C178350159 @default.
- W3122851554 hasConceptScore W3122851554C186229450 @default.
- W3122851554 hasConceptScore W3122851554C199539241 @default.
- W3122851554 hasConceptScore W3122851554C2779220109 @default.
- W3122851554 hasConceptScore W3122851554C73283319 @default.
- W3122851554 hasConceptScore W3122851554C94625758 @default.
- W3122851554 hasLocation W31228515541 @default.
- W3122851554 hasLocation W31228515542 @default.
- W3122851554 hasLocation W31228515543 @default.
- W3122851554 hasOpenAccess W3122851554 @default.
- W3122851554 hasPrimaryLocation W31228515541 @default.
- W3122851554 hasRelatedWork W1493997746 @default.
- W3122851554 hasRelatedWork W2128894095 @default.
- W3122851554 hasRelatedWork W2169143527 @default.
- W3122851554 hasRelatedWork W2313683096 @default.
- W3122851554 hasRelatedWork W2373038825 @default.
- W3122851554 hasRelatedWork W2374874543 @default.
- W3122851554 hasRelatedWork W2377812479 @default.
- W3122851554 hasRelatedWork W4206127509 @default.
- W3122851554 hasRelatedWork W4321390639 @default.
- W3122851554 hasRelatedWork W996605769 @default.
- W3122851554 isParatext "false" @default.
- W3122851554 isRetracted "false" @default.
- W3122851554 magId "3122851554" @default.
- W3122851554 workType "article" @default.