Bank Funding Strategies: The Use of Bonds and the Bail-in Effect (Palgrave Macmillan Studies in Banking and Financial Institutions)

This book illustrates the importance of bonds as a funding tool available to banks. After providing the reader with an overview of the funding strategies adopted during the last ten years by European banks, the book offers a deep focus on the Italian banking industry. Notably, the authors illustrate how bonds have been a primary funding choice for Italian banks, as well as a preponderant asset in Italian households' portfolios. Furthermore, they highlight the consequences of the adoption of the Bank Recovery and Resolution Directive (BRRD) on the yields offered by bonds of Italian banks. Finally, they conclude the volume with the illustration of very recent case studies about the application of the BRRD to some problematic banks in Italy and the related side effects generated to bank bondholders. All the analyses presented in the book are supported by the use of quantitative data.-- Provided by publisher Annotation This volume illustrates the importance of bonds as a funding tool available to banks. After providing the reader with an overview of the funding strategies adopted during the last ten years by European banks, it offers a deep focus on the Italian banking industry. Notably, the authors illustrate how bonds have been a primary funding choice for Italian banks, as well as a preponderant asset in Italian households' portfolios. Furthermore, they highlight the consequences of the adoption of the Bank Recovery and Resolution Directive (BRRD) on the yields offered by bonds of Italian banks. Finally, they conclude the volume with the illustration of very recent case studies about the application of the BRRD to some problematic banks in Italy and the related side effects generated to bank bondholders Front Matter ....Pages i-xx The Funding Strategies of European Banks: A Discussion (Fabrizio Crespi, Danilo V. Mascia)....Pages 1-47 The Funding Strategies of Italian Banks: The Importance of Bonds (Fabrizio Crespi, Danilo V. Mascia)....Pages 49-67 The Different Types of Bonds Issued by Italian Banks: An Overview (Fabrizio Crespi, Danilo V. Mascia)....Pages 69-91 The Bail-in Effect: How the Cost of Funding Through Bonds has Changed After the Introduction of the BRRD (Fabrizio Crespi, Danilo V Mascia)....Pages 93-116 Back Matter ....Pages 117-147