are most suitable for explaining the returns of fixed income securities and bonds. This paper shows that by introducing a …

the yields of Euro-area central government bonds. The empirical analysis shows that investors demand higher yields for … bonds with higher collateral haircuts. The importance of collateral haircuts on bond yields remains robust after controlling …

longer capable of issuing bonds under their own exclusive monetary control. Thus, integrating euro area sovereign bond … markets should be a top priority. One remedy would be to pool sovereignty via euro bonds, or, given the reluctance to embrace … risk-sharing among sovereigns, to introduce synthetic euro bonds that work without debt mutualization. …

well as individual investors allocate approximately 20 percent of portfolios to inflation-linked bonds. There are four …