These daily movements in the Portuguese long-term interest rates could reflect a risk
premium. The EC recommendation clearly signalled to markets that Portuguese
public finances were facing difficulties. Therefore, markets might have attributed
additional risk to the government debt, demanding a higher interest rate to hold the
long-term bonds. At the same time, the risk of private bonds might have decreased
relatively to government bonds, since this EC recommendation was not seen as
directly damaging this segment of the market.
After a few months of respite brought about mainly by the provision of
longer-term liquidity by the Eurosystem in early 2012, the sovereign-debt
crisis intensified again in spring. However, financial markets have recovered
since July, helped by important policy decisions in the EU and the
announcement of further monetary easing on both sides of the Atlantic.
Sovereign yields in most vulnerable countries have receded somewhat since
summer. Risk appetite appears to have improved as stock markets have
recuperated the losses experienced earlier in the year.
We start by considering the role of sovereign debt problems. Are the baseline results picking
up greater-than-expected effects of sovereign debt problems rather than the effects of fiscal
consolidation? As Table 2 reports, the results are robust to controlling for the initial (end-
2009) government-debt-to-GDP ratio, for the initial fiscal-balance-to-GDP ratio, and for the
initial structural fiscal-balance-to-GDP ratio.
This study does not examine the relationship between credit scores and the
likelihood of insurance losses. Regulators and consumer groups have expressed growing
concern that use of credit scores may restrict the availability of insurance products in
predominantly minority and low income communities, markets that already show signs of
significant affordability and access problems (Kabler, 2004).
The extension of central bank liquidity eased the pace of asset-shedding
observed in late 2011, but did not turn the underlying trend. If the banks in the
EBA sample, for instance, failed to roll over their senior unsecured debt
maturing over a two-year horizon, which amounts to more than €1,100 billion
(€600 billion among banks with a capital shortfall), they would have to shed
funded assets in equal measure. By covering these funding needs, the LTROs
and dollar swap lines helped avert an accelerated deleveraging process.
Obtaining comprehensive data and information on public debt is challenging. Data
availability is limited along the dimensions of time, country coverage, and debt
completeness. For example, data on external public debt for developing countries are
generally available from the GDF dataset. However, the GDF does not cover advanced
economies, and separates public and private components of external debt only for long-term
debt. Similarly, the IFS database starts in 1970, but data are available for just a handful of
countries in the early years.
The University of Kentucky owns its name and all trademarks. Trademarks include any logo,
signature, symbol, mark, seal, nickname, letters, word or derivative that can be associated with
UK and can be distinguished from those of other institutions or entities. UK protects and
enhances its reputation by assuring that its trademarks appear only on appropriate materials or
UK established a Trademark Licensing Program in 1984. Licensed manufacturers pay the
University a royalty on all products produced. These revenues help fund the debt service on
UK’s William T.
The Thrive Diet grew out of necessity. At the age of 15, I decided that
I wanted to become a professional athlete. My goal was to ultimately
be a professional Ironman triathlete. Consisting of a 2.4-mile swim,
112-mile cycle, and a 26.2-mile run (a marathon), Ironman triathlon
racing is not the easiest way to make a living. But it appealed to me.
I enjoyed outdoor exercise, hard work, and a challenge, so why not
make a career out of it?