05135oam 22012134 450 991078833490332120230721045652.01-4623-1137-797866128432351-4519-8625-41-282-84323-01-4518-7255-0(CKB)3170000000055267(SSID)ssj0000940869(PQKBManifestationID)11545389(PQKBTitleCode)TC0000940869(PQKBWorkID)10955970(PQKB)10158297(OCoLC)586122872(MiAaPQ)EBC1605911(IMF)WPIEE2009108(EXLCZ)99317000000005526720020129d2009 uf 0engurcn|||||||||txtccrFrom Bear Stearns to Anglo Irish : How Eurozone Sovereign Spreads Related to Financial Sector Vulnerability /Ashoka ModyWashington, D.C. :International Monetary Fund,2009.39 pIMF Working PapersBibliographic Level Mode of Issuance: Monograph1-4519-1685-X Includes bibliographical references.This paper attempts to explain the recent rise and differentiation of sovereign spreads across the countries of the eurozone. Following the onset of the subprime crisis in July 2007, spreads rose but mainly on account of common global factors. The rescue of Bear Stearns in March 2008 marked a turning point. Countries thereafter were increasingly differentiated. Sovereign spreads of a eurozone country tended to rise when the prospects of its domestic financial sector worsened. It appears, therefore, that the rescue of Bear Stearns created a link between financial sector vulnerabilities and a larger contingent liability on public finances. Following the failure of Lehman Brothers, spreads also rose faster for countries with higher ratios of public debt-to-GDP. These transitional dynamics appear to have concluded with the nationalization of Anglo Irish: sovereign spreads throughout the eurozone jumped, with the jump emphasizing the differentiation by financial sector vulnerability and public debt levels. The results imply that, to varying degrees, countries may have moved to a new regime of weak economic outlook, financial sector fragilities, and strains on public finances.IMF Working Papers; Working Paper ;No. 2009/108Financial crisesBusiness cyclesFinance: GeneralimfInvestments: BondsimfPublic FinanceimfIndustries: Financial ServicesimfFiscal PolicyimfInternational Financial MarketsimfDebtimfDebt ManagementimfSovereign DebtimfFinancial Institutions and Services: GeneralimfGeneral Financial Markets: General (includes Measurement and Data)imfGeneral Financial Markets: Government Policy and RegulationimfPublic finance & taxationimfFinanceimfInvestment & securitiesimfFinancial sectorimfPublic debtimfSovereign bondsimfCompetitionimfFinancial sector riskimfEconomic sectorsimfFinancial institutionsimfFinancial marketsimfFinancial sector policy and analysisimfFinancial services industryimfDebts, PublicimfBondsimfFinancial risk managementimfFinlandimfFinancial crises.Business cycles.Finance: GeneralInvestments: BondsPublic FinanceIndustries: Financial ServicesFiscal PolicyInternational Financial MarketsDebtDebt ManagementSovereign DebtFinancial Institutions and Services: GeneralGeneral Financial Markets: General (includes Measurement and Data)General Financial Markets: Government Policy and RegulationPublic finance & taxationFinanceInvestment & securitiesFinancial sectorPublic debtSovereign bondsCompetitionFinancial sector riskEconomic sectorsFinancial institutionsFinancial marketsFinancial sector policy and analysisFinancial services industryDebts, PublicBondsFinancial risk managementMody Ashoka888386DcWaIMFBOOK9910788334903321From Bear Stearns to Anglo Irish3685554UNINA