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The Janus-headed salvation: Sovereign and bank credit risk premia during 2008-2009

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  • Ejsing, Jacob
  • Lemke, Wolfgang

Abstract

In autumn 2008, euro area governments announced comprehensive rescue packages for banks. This induced decreasing bank and increasing government credit spreads. Moreover, the sensitivity of perceived sovereign credit quality to further crisis aggravations increased, and vice versa for banks.

Suggested Citation

  • Ejsing, Jacob & Lemke, Wolfgang, 2011. "The Janus-headed salvation: Sovereign and bank credit risk premia during 2008-2009," Economics Letters, Elsevier, vol. 110(1), pages 28-31, January.
    • Handle: RePEc:eee:ecolet:v:110:y:2011:i:1:p:28-31
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