Pagano-Zechner price for my paper “Exporting Sovereign Stress”

My paper “Exporting Sovereign Stress: Evidence from Syndicated Bank Lending during the Euro Area Sovereign Debt Crisis”, written together with Alex Popov won the 2016 Pagano-Zechner price for the best non-investment paper in the Review of Finance. In this paper we show that tensions in Eurozone government-bond markets were transmitted internationally through the bank lending channel. Lending by European banks with sizeable exposures to sovereign debt from the troubled Eurozone countries became impaired after the start of the crisis. This resulted in a reallocation away from foreign markets except the US and an increase in home bias.