Integrated capital markets facilitate risk sharing across countries. Lower home bias in financial investments is an indicator of risk sharing. We highlight that existing indicators of equity home bias in the literature suffer from incomplete coverage because they consider only listed equities....

This research paper uses data disclosed in the context of the 2010 EU-wide stress test exercise to show that a substantial home bias is present in the sovereign bond portfolios of nearly all large European banks. This finding is surprising in so far as previous research papers found home bias to...

We analyse euro area investors' portfolio rebalancing during the ECB's Asset Purchase Programme at the security level. Our empirical analysis shows that euro area investors (in particular investment funds and households) actively rebalanced away from securities targeted under the Public Sector...