Eurozone bail-in regime has not widened bond spreads – ECB paper
Wider financial and economic environment play key role in determining bond spreads – researcher
A working paper published by the European Central Bank looks at the impact of the eurozone’s new bail-in framework on the spreads between yields on banks’ subordinated bond and senior unsecured bonds.
In Has the new bail-in framework increased the yield spread between subordinated and senior bonds? Irene Pablos Nuevo also investigates the spreads with the characteristics of the bonds’ issuers and the broader economic and financial environment.
The author does not find evidence “of a
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