LEADER 06924oam 22013334 450 001 9910973830803321 005 20250426110822.0 010 $a9786612843235 010 $a9781462311378 010 $a1462311377 010 $a9781451986259 010 $a1451986254 010 $a9781282843233 010 $a1282843230 010 $a9781451872552 010 $a1451872550 035 $a(CKB)3170000000055267 035 $a(SSID)ssj0000940869 035 $a(PQKBManifestationID)11545389 035 $a(PQKBTitleCode)TC0000940869 035 $a(PQKBWorkID)10955970 035 $a(PQKB)10158297 035 $a(OCoLC)586122872 035 $a(MiAaPQ)EBC1605911 035 $a(IMF)WPIEE2009108 035 $a(IMF)WPIEA2009108 035 $aWPIEA2009108 035 $a(EXLCZ)993170000000055267 100 $a20020129d2009 uf 0 101 0 $aeng 135 $aurcn||||||||| 181 $ctxt 182 $cc 183 $acr 200 10$aFrom Bear Stearns to Anglo Irish : $eHow Eurozone Sovereign Spreads Related to Financial Sector Vulnerability /$fAshoka Mody 205 $a1st ed. 210 1$aWashington, D.C. :$cInternational Monetary Fund,$d2009. 215 $a39 p 225 1 $aIMF Working Papers 300 $aBibliographic Level Mode of Issuance: Monograph 311 08$a9781451916850 311 08$a145191685X 320 $aIncludes bibliographical references. 327 $aIntro -- Contents -- I. Introduction -- II. The Data and Econometric Approach -- III. Domestic Finance Matters -- IV. The Phases of the Crisis -- A. From Subprime Onset to Bear Stearns -- B. After Bear Stearns -- C. After the Anglo Irish Nationalization -- D. Monthly Variations in Spreads -- V. Country Differences -- A. Following Bear Stearns: Spotlight on Countries' Loss of Competitiveness -- B. The Role of Public Debt -- VI. Interpreting the Findings -- VII. Conclusions -- References -- Tables -- 1. Weekly Changes in Spreads (basis points) -- 2. Does Domestic Finance Matter? -- 3. Domestic Finance Does Matter -- 4. Phases of the Crisis -- 5. Explaining the Jump in Spreads After the Anglo Irish Nationalization -- 6. Phases as Seen Through Monthly Changes in Spreads -- 7. Subprime to Bear Stearns: Limited Differentiation Across Countries -- 8. Post Bear Stearns: Country Differentiation By Loss of Competitiveness -- 9. The Role of Public Debt -- 10. Post-Bear Stearns Country Variations: Monthly Data -- Figures -- 1. Trends and Dispersion of Eurozone Sovereign Spreads -- 2. Sovereign Spreads and Prospects of the Financial Sector -- 3. Real Effective Exchange Rate Appreciation from January 2003 to July 2008 -- 4. Correlation Between Debt-to-GDP Ratio and Sovereign Spreads -- 5. Eurozone: Evolving Real GDP Consensus Forecasts for 2009 -- 6. Change in Growth Projections for 2009 as F-Ratio Changed During 2008 -- 7. Do Sovereign Spreads Anticipate GDP Growth? -- 8. Regimes of High and Low Sovereign Spreads. 330 3 $aThis paper attempts to explain the recent rise and differentiation of sovereign spreads across the countries of the eurozone. Following the onset of the subprime crisis in July 2007, spreads rose but mainly on account of common global factors. The rescue of Bear Stearns in March 2008 marked a turning point. Countries thereafter were increasingly differentiated. Sovereign spreads of a eurozone country tended to rise when the prospects of its domestic financial sector worsened. It appears, therefore, that the rescue of Bear Stearns created a link between financial sector vulnerabilities and a larger contingent liability on public finances. Following the failure of Lehman Brothers, spreads also rose faster for countries with higher ratios of public debt-to-GDP. These transitional dynamics appear to have concluded with the nationalization of Anglo Irish: sovereign spreads throughout the eurozone jumped, with the jump emphasizing the differentiation by financial sector vulnerability and public debt levels. The results imply that, to varying degrees, countries may have moved to a new regime of weak economic outlook, financial sector fragilities, and strains on public finances. 410 0$aIMF Working Papers; Working Paper ;$vNo. 2009/108 606 $aFinancial crises 606 $aBusiness cycles 606 $aBonds$2imf 606 $aCompetition$2imf 606 $aDebt Management$2imf 606 $aDebt$2imf 606 $aDebts, Public$2imf 606 $aEconomic sectors$2imf 606 $aFinance$2imf 606 $aFinance: General$2imf 606 $aFinancial Institutions and Services: General$2imf 606 $aFinancial institutions$2imf 606 $aFinancial markets$2imf 606 $aFinancial risk management$2imf 606 $aFinancial sector policy and analysis$2imf 606 $aFinancial sector risk$2imf 606 $aFinancial sector$2imf 606 $aFinancial services industry$2imf 606 $aFiscal Policy$2imf 606 $aGeneral Financial Markets: General (includes Measurement and Data)$2imf 606 $aGeneral Financial Markets: Government Policy and Regulation$2imf 606 $aIndustries: Financial Services$2imf 606 $aInternational Financial Markets$2imf 606 $aInvestment & securities$2imf 606 $aInvestments: Bonds$2imf 606 $aPublic debt$2imf 606 $aPublic finance & taxation$2imf 606 $aPublic Finance$2imf 606 $aSovereign bonds$2imf 606 $aSovereign Debt$2imf 607 $aFinland$2imf 615 0$aFinancial crises. 615 0$aBusiness cycles. 615 7$aBonds 615 7$aCompetition 615 7$aDebt Management 615 7$aDebt 615 7$aDebts, Public 615 7$aEconomic sectors 615 7$aFinance 615 7$aFinance: General 615 7$aFinancial Institutions and Services: General 615 7$aFinancial institutions 615 7$aFinancial markets 615 7$aFinancial risk management 615 7$aFinancial sector policy and analysis 615 7$aFinancial sector risk 615 7$aFinancial sector 615 7$aFinancial services industry 615 7$aFiscal Policy 615 7$aGeneral Financial Markets: General (includes Measurement and Data) 615 7$aGeneral Financial Markets: Government Policy and Regulation 615 7$aIndustries: Financial Services 615 7$aInternational Financial Markets 615 7$aInvestment & securities 615 7$aInvestments: Bonds 615 7$aPublic debt 615 7$aPublic finance & taxation 615 7$aPublic Finance 615 7$aSovereign bonds 615 7$aSovereign Debt 676 $a338.192356 700 $aMody$b Ashoka$0888386 801 0$bDcWaIMF 906 $aBOOK 912 $a9910973830803321 996 $aFrom Bear Stearns to Anglo Irish$94372538 997 $aUNINA