یکپارچگی بازار مالی اروپا: مورد اوراق قرضه بخش خصوصی و وام سندیکایی

This paper uses individual transaction data on bonds and syndicate loans from European issuers to document market segmentation along national lines: banks manage bond issues because of ties to home institutional investors, and syndicate loans due to ties to home issuers. The evidence supports the hypothesis that historically grown reputational ties between financial institutions and their customers are in part responsible for the slow integration of the European financial market place. Traditionally, home currency investment restrictions for many of Europe's institutional investors were responsible for disproportionate market shares in the home currency markets of bond underwriters. The introduction of the Euro should greatly increase competition in bond underwriting. This, however, may benefit non-EU investment banks the most.