00000nam 2200000zi 4500 9.883504 CaOODSP 20221107170606 m o d f cr |n||||||||| 200113t20202020onc ob f000 0 eng d CaOODSP eng rda CaOODSP n-cn--- FB3-5/2020-1E-PDF Fontaine, Jean-Sébastien. Contagion in dealer networks / by Jean-Sébastien Fontaine and Adrian Walton. Ottawa : Bank of Canada = Banque du Canada, 2020. ©2020 1 online resource (iii, 41 pages) text txt rdacontent computer c rdamedia online resource cr rdacarrier Bank of Canada staff working paper, 1701-9397 ; 2020-1 Cover title. "Last updated: January 9, 2020." Includes bibliographical references (pages 31-32). "Dealer networks provide essential intermediation services in over-the-counter markets. We document the response of dealer networks to the arrival of new public information. We find that after public news releases, dealer networks become more complex and channel larger flows of securities between buyers and sellers. These effects are concentrated in bonds that were more actively traded and had more-complex dealer networks. One natural interpretation is that dealer networks become more complex after the news releases to accommodate shifts of intermediation demand. For these bonds, following the news releases, we also document more frequent and larger contagion of settlement fails over the network. The evidence points to a trade-off. Settlement fails allow for contagion of counter party risk in dealer networks; yet, allowing for fails provides dealers greater flexibility to accommodate shifts in demand for intermediation"--Abstract. Financial institutions Risk management. Industrial organization (Economic theory) Institutions financières Gestion du risque. Économie industrielle. Bank of Canada. Staff working paper (Bank of Canada) 1701-9397 ; 2020-1. (CaOODSP)9.806221 PDF 603 KB https://publications.gc.ca/collections/collection_2020/banque-bank-canada/FB3-5-2020-1-eng.pdf