Portfolio Diversification, Leverage, and Financial Contagion

Portfolio Diversification, Leverage, and Financial Contagion
Author :
Publisher : International Monetary Fund
Total Pages : 39
Release :
ISBN-10 : 9781451855791
ISBN-13 : 1451855796
Rating : 4/5 (91 Downloads)

Book Synopsis Portfolio Diversification, Leverage, and Financial Contagion by : Mr.Garry J. Schinasi

Download or read book Portfolio Diversification, Leverage, and Financial Contagion written by Mr.Garry J. Schinasi and published by International Monetary Fund. This book was released on 1999-10-01 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: Models of “contagion” rely on market imperfections to explain why adverse shocks in one asset market might be associated with asset sales in many unrelated markets. This paper demonstrates that contagion can be explained with basic portfolio theory without recourse to market imperfections. It also demonstrates that “Value-at-Risk” portfolio management rules do not have significantly different consequences for portfolio rebalancing and contagion than other rules. The paper’s main conclusion is that portfolio diversification and leverage may be sufficient to explain why investors would find it optimal to sell many higher-risk assets when a shock to one asset occurs.


Portfolio Diversification, Leverage, and Financial Contagion Related Books

Portfolio Diversification, Leverage, and Financial Contagion
Language: en
Pages: 39
Authors: Mr.Garry J. Schinasi
Categories: Business & Economics
Type: BOOK - Published: 1999-10-01 - Publisher: International Monetary Fund

DOWNLOAD EBOOK

Models of “contagion” rely on market imperfections to explain why adverse shocks in one asset market might be associated with asset sales in many unrelated
Theories of Contagion
Language: en
Pages: 89
Authors: Andreas Vester
Categories: Business & Economics
Type: BOOK - Published: 2006-10-02 - Publisher: diplom.de

DOWNLOAD EBOOK

Inhaltsangabe:Abstract: In recent years academics and policy makers have become more and more interested in the phenomenon of contagion, a concept involving the
International Financial Contagion
Language: en
Pages: 461
Authors: Stijn Claessens
Categories: Business & Economics
Type: BOOK - Published: 2013-04-17 - Publisher: Springer Science & Business Media

DOWNLOAD EBOOK

No sooner had the Asian crisis broken out in 1997 than the witch-hunt started. With great indignation every Asian economy pointed fingers. They were innocent by
IMF Staff Papers
Language: en
Pages: 128
Authors: International Monetary Fund. Research Dept.
Categories: Business & Economics
Type: BOOK - Published: 2000-01-01 - Publisher: International Monetary Fund

DOWNLOAD EBOOK

This paper analyzes portfolio diversification, leverage, and financial contagion. It studies the extent to which basic principles of portfolio diversification e
Portfolio Diversification, Leverage, and Financial Contagion
Language: en
Pages: 44
Authors: Garry J. Schinasi
Categories: Contagion (Social psychology).
Type: BOOK - Published: 1999 - Publisher:

DOWNLOAD EBOOK