This analysis studies the evolution of funding costs of banks from 28 European countries (EU28) in the primary bond market before and after the great financial crisis of 2007-2009 and the European sovereign debt crisis of 2011-2012. Based on the Centralised Securities Data Base (CSDB) our main...

This paper analyses risks that arise from banks' credit portfolio composition and can be referred to collectively as allocation risk. That is, a potential increase in, or elevated levels of, allocation risk mean a larger exposure of banks to borrowers at the upper end of the risk distribution....