Hedging/Netting contracts created web of vulnerability
The practice of hedging/netting contracts between the different players in the system means that the whole system becomes potentially vulnerable to a break down in the ability to pay anywhere in the system.
CONTEXT(Help)
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The Global Financial Crisis »The Global Financial Crisis
Immediate triggers of the financial crisis? »Immediate triggers of the financial crisis?
Pathology in the Credit Default Swaps market »Pathology in the Credit Default Swaps market
Hedging/Netting contracts created web of vulnerability
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