Credit Derivatives Premium as a New Japan Premium

@inproceedings{Krueger2004CreditDP,
  title={Credit Derivatives Premium as a New Japan Premium},
  author={Anne O. Krueger and Kimie Harada},
  year={2004}
}
AT THE HEIGHT of the Japanese banking crisis of 199798, a popular indicator of weakness was the so-called Japan premium, that is, the premium in the interest rate charged to Japanese banks in the interbank market. The internationally active Japanese banks had to pay a premium in borrowing US dollars and, to a much lesser extent, Japanese yen, from western banks. The Japan premium was considered to reflect western banks' skepticism on opaque accounting and supervision. Ihe Japan premium… CONTINUE READING