How Difficult is to Raise Money in Turbulent Times?

The aim of this study is to investigate the following questions: i) how deeply systemic crises (subprime, sovereign crisis) impacted on the cost of bank long-term funding?; (2) were such effects tied to the issue's characteristics- maturity, rating, volume-or to the issuing bank main specific characteristics-for instance, business model-or were they mainly dependent on the macro conditions of the country in which the bank operate? In order to answer these questions, we collect information on banks' long-term debt issuance for the years 2006-12. The analysis is based on a dataset created using DCM Analytics by Dealogic. We collect information on about 26,350 debt issuances by bank headquartered in France, germany, Italy, Norway, Spain, Sweden, Switzerland, the United Kingdom, the United States and Japan. We document the impact of the subprime crisis and subsequent sovereign crisis on the volume, frequency of issuance, nature of instrument and cost of bank bonds.