Banks, Government Bonds, and Default - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Banks, Government Bonds, and Default write by Nicola Gennaioli. This book was released on 2014-07-08. Banks, Government Bonds, and Default available in PDF, EPUB and Kindle. We analyze holdings of public bonds by over 20,000 banks in 191 countries, and the role of these bonds in 20 sovereign defaults over 1998-2012. Banks hold many public bonds (on average 9% of their assets), particularly in less financially-developed countries. During sovereign defaults, banks increase their exposure to public bonds, especially large banks and when expected bond returns are high. At the bank level, bondholdings correlate negatively with subsequent lending during sovereign defaults. This correlation is mostly due to bonds acquired in pre-default years. These findings shed light on alternative theories of the sovereign default-banking crisis nexus.
Issuing Government Bonds to Finance Bank Recapitalization and Restructuring
Issuing Government Bonds to Finance Bank Recapitalization and Restructuring - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Issuing Government Bonds to Finance Bank Recapitalization and Restructuring write by Mr.Michael Andrews. This book was released on 2003-11-01. Issuing Government Bonds to Finance Bank Recapitalization and Restructuring available in PDF, EPUB and Kindle. Bonds issued by the government or government agencies are often used to finance bank restructuring following a systemic crisis. Many conflicting considerations affect the design of the bonds used to pay for public sector investment in bank equity or the purchase of distressed assets from banks. Some bond features can leave restructured banks facing significant risks, laying the foundation for future banking sector problems. Sovereign default makes publicly financed bank restructuring more difficult, but it is still possible to carry out if banks receive sufficient interest income to provide a margin over their cost of funds.
Managing the Sovereign-Bank Nexus
Managing the Sovereign-Bank Nexus - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Managing the Sovereign-Bank Nexus write by Mr.Giovanni Dell'Ariccia. This book was released on 2018-09-07. Managing the Sovereign-Bank Nexus available in PDF, EPUB and Kindle. This paper reviews empirical and theoretical work on the links between banks and their governments (the bank-sovereign nexus). How significant is this nexus? What do we know about it? To what extent is it a source of concern? What is the role of policy intervention? The paper concludes with a review of recent policy proposals.
American Default
American Default - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook American Default write by Sebastian Edwards. This book was released on 2019-09-10. American Default available in PDF, EPUB and Kindle. The untold story of how FDR did the unthinkable to save the American economy.
The Liquidation of Government Debt
The Liquidation of Government Debt - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Liquidation of Government Debt write by Ms.Carmen Reinhart. This book was released on 2015-01-21. The Liquidation of Government Debt available in PDF, EPUB and Kindle. High public debt often produces the drama of default and restructuring. But debt is also reduced through financial repression, a tax on bondholders and savers via negative or belowmarket real interest rates. After WWII, capital controls and regulatory restrictions created a captive audience for government debt, limiting tax-base erosion. Financial repression is most successful in liquidating debt when accompanied by inflation. For the advanced economies, real interest rates were negative 1⁄2 of the time during 1945–1980. Average annual interest expense savings for a 12—country sample range from about 1 to 5 percent of GDP for the full 1945–1980 period. We suggest that, once again, financial repression may be part of the toolkit deployed to cope with the most recent surge in public debt in advanced economies.
