Managing Editors’ Blog

Bank Exposures and Sovereign Stress Transmission

(This post is thanks to Editor Thorsten Beck)

The lead article in Volume 21, issue 6 of the Review of Finance is “Bank Exposures and Sovereign Stress Transmission” by Carlo Altavilla, Marco Pagano and Saverio Simonelli. The link between sovereign and bank distress has been at the core of the Eurozone crisis, and several papers have addressed the causes of banks’ concentration on domestic sovereign bonds and the repercussions of this concentration for banks’ lending activity and for the real economy.… Read more...

Macro-Finance

The lead article in Volume 21, Issue 3 of the Review of Finance is “Macro-Finance” by John Cochrane of Stanford. This is an excellent review of recent advances and future research directions on a major asset pricing topic – macro-finance – written in a clear way accessible to those outside the asset pricing literature (such as me).… Read more...