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Systemic risk and portfolio diversification : evidence from the futures market / by Radoslav Raykov.FB3-5/2021-50E-PDF

"This paper explores the extent to which correlated investments in the futures market concentrated systemic risk on large Canadian banks around the 2008 crisis. We find that core banks took positions against the periphery, increasing their systemic risk as a group. On the portfolio level, position similarity was the main systemic risk driver for core banks, while cross price correlations drove the systemic risk of non-core banks. Core banks were more diversified, but their portfolios also overlapped more. By contrast, non-core banks were less diversified, but also overlapped less. This significantly nuances the debate on concentration versus diversification as systemic risk sources"--Abstract.

Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.904072&sl=0

Publication information
Department/Agency
  • Bank of Canada, issuing body.
TitleSystemic risk and portfolio diversification : evidence from the futures market / by Radoslav Raykov.
Series title
  • Staff working paper = Document de travail du personnel, 1701-9397 ; 2021-50
Publication typeMonograph - View Master Record
Language[English]
FormatDigital text
Electronic document
Note(s)
  • "Last updated: October 13, 2021."
  • Includes bibliographical references (pages 34-37).
Publishing information
  • Ottawa, Ontario, Canada : Bank of Canada = Banque du Canada, 2021.
  • ©2021
Author / Contributor
  • Raykov, Radoslav S., author.
Description1 online resource (ii, 37 pages) : charts.
Catalogue number
  • FB3-5/2021-50E-PDF
Subject terms
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