's default and the ensuing default contagion. In unwinding the defaulter's positions, the CCP faces the price impact of …-mediated contagion and its amplification. A novel spatial measure captures the covariance between members' CDS holdings and the CDS being … predation – minimizing overall CCP and member losses. A dynamic simulation, calibrated to OTC market data, supports these …

value), the magnitude of default contagion, the price impact of pre- dation, and the disciplinary mechanism inherent in the …

profits, and how predation decreases the profits of all members, pushing banks to default. Furthermore, a hybrid CCP (vs …. current) structure provides a natural disciplinary mechanism for predation. Also, it more incentive compatible for the CCP, in …

contagion from crisis centers. …

, global risk aversion and contagion. While there are ways to reduce the detrimental impact of balance sheet effects, these are …

information asymmetry by not rescuing the first-hit country. At the same time, it limits crisis contagion by rescuing countries in …

networks to show how contagion can propagate under different scenarios when the topology of the financial system, the … characteristics of the financial institutions, and the regulations on capital are let vary. First, we benchmark our results using a … simple model of contagion as the one that has been popularized by Gai and Kapadia (2010). Then, we provide a richer model in …