Contagion


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Contagion

Excess correlation of delivering or bond returns. For example, under usual conditions we might observe a certain level of correlation of market returns. A period of contagion would be associated with much higher-than-expected correlation. Some examples are the conjectured contagion in East Asian markets beginning in July 1997 when the Thai currency devalued and the impact across many emerging markets of the Russian default. Contagion is difficult to identify because you need some sort of measure of the expected correlation. It is complicated because correlations are known to change through time, for example, see Erb, Harvey and Viskanta's article in the 1994 Financial Analysts Journal. In periods of negative returns, correlations (and volatility) are known to increase, so what might appear to be excessive may not be contagion.

Contagion

A recession or economic crisis that begins in one country and extends to others. For example, the late 2000s recession began with a large number of defaults on subprime mortgages in the United States. However, because investors worldwide invested in mortgage-backed securities backed by those mortgages, it affected portfolios and funds internationally and became a global meltdown. See also: Great Recession.
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He argues, rather than the ongoing focus on interconnectedness, that contagion was actually at work during the crisis in the money market fund and investment bank industry, as well as the commercial paper, interbank lending, and repo markets after the failure of Lehman.
The frontier and innovation of dual Copula model in financial risk contagion effect measurement
Since the late 1990s, the contagion risk in the interbank market has been assessed across many central banks.
Crazed mutant personnel, medical staff and lab techs now prowl Contagion on their hunt for anything living .
Keywords: Emotional contagion, followercentric approach, leader, follower, leadership
Section 2 reviews the literature on financial contagion and risk sharing on the interbank market.
Research on the mechanism of sentiment contagion is mostly conducted through models originating from the classical model of SIR or SIS [11-14].
We also find significant evidence of contagion in school shootings, for an incident is contagious for an average of 13 days, and incites an average of at least 0.
The watchdog, which coordinates supervision of banks across the EU, said direct contagion from the Greek crisis is minimal, with little sign of indirect contagion, such as large investor withdrawals from funds.
However, in a more severe contagion scenario where vulnerable Eurozone countries such as Spain, Portugal and even Italy could be impacted by contagion and investor doubts about whether these countries might also eventually exit the Eurozone, the euro could depreciate more sharply.
The ECB's newfound ability to print money, essentially without limit, to support banks and governments has reduced Greek contagion to insignificance.
DUBLIN, Rabi'II 8, 1436, Jan 28, 2015, SPA -- The Greek government has clearly stated it intends to honour its debts and the ability to avoid contagion from its problems is considerable if not overwhelming, Bank of England Governor Mark Carney said on Wednesday, according to Reuters.