... group includes Austria, Belgium, Finland, France, and The Netherlands. The window length in all cases is 500 days.Credit-risk valuation in the sovereign CDS and bonds markets: Evidence from the ... higher in the case of the CDS investment). For this reason, in principle, an increase in financing costs would have a negative effect on the basis. Due to the difficulty in obtaining data on institution-level ... Portugal in 2011 and Greece in 2009 and 2010). Also, we observe an increase in both the average and the volatility of CDS and bond spreads over the subsequent years (from 2009 on) in most of the...