at Google ScholarTitle data
Hild, Alexandra ; Herz, Bernhard ; Bauer, Christian:
Structured Eurobonds : Limiting Liability and Distributing Profits.
In: JCMS Journal of Common Market Studies.
Vol. 52
(2014)
Issue 2
.
- pp. 250-267.
ISSN 1468-5965
DOI: https://doi.org/10.1111/jcms.12104
Abstract in another language
In this article, an alternative eurobond approach is developed by applying an asset-backed security (ABS) transaction to a pool of eurozone sovereign bonds. Based on the new approach two different rules to distribute the associated interest gains are analyzed. Within the ABS structure a special purpose vehicle buys a portfolio of eurozone sovereign bonds (pooling) and issues a set of subordinated eurobonds with varying risk and rating (tranching). A large share of less risky securities is created as structuring concentrates the default risk in one part of the capital structure. A trust fund covers first losses in case of a country default. This approach has three major advantages. First, all eurozone countries can gain from eurobonds. These benefits are driven by partial liability, which also limits moral hazard, and the distribution of interest gains to all participating countries. Second, the approach is very flexible and quickly implementable. Finally, it is in line with European Union law.
Further data
| Item Type: | Article in a journal |
|---|---|
| Refereed: | Yes |
| Institutions of the University: | Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics I - International Economics and Finance > Chair Economics I - International Economics and Finance - Univ.-Prof. Dr. Bernhard Herz Faculties Faculties > Faculty of Law, Business and Economics Faculties > Faculty of Law, Business and Economics > Department of Economics Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics I - International Economics and Finance |
| Result of work at the UBT: | Yes |
| DDC Subjects: | 300 Social sciences > 330 Economics |
| Date Deposited: | 31 Mar 2015 07:24 |
| Last Modified: | 15 Jun 2022 13:45 |
| URI: | https://eref.uni-bayreuth.de/id/eprint/9521 |