Seminar 217, Risk Management: Endogenous risk, indirect contagion and systemic risk

Seminar 217, Risk Management: Endogenous risk, indirect contagion and systemic risk

Risk Seminar
Feb 5, 2019, 11:00 AM - 12:30 PM | 1011 Evans Hall | Happening As Scheduled
Speakers: Rama Cont (Speaker - Featured)
Deleveraging by financial institutions in response to losses may lead to contagion of losses across institutions with common asset holdings. Unlike direct contagion via counterparty exposures, this channel of contagion -which we call indirect contagion- is mediated through market prices and does not require bilateral exposures or relations.