Contagion


Also found in: Dictionary, Thesaurus, Medical, Encyclopedia, Wikipedia.

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.
Mentioned in ?
References in periodicals archive ?
This first installment ends with a theory about the origin and vector of the contagion that comes with a shattering realization.
"Despite higher leverage, the risk of contagion is mitigated by high investor confidence in major Western governments' hard currency debt.
Researchers have investigated multiple channels through which contagion could occur.
I very much hope that Contagion will serve as an act of commemoration and remembering."
However, emerging markets are sure to get caught up in the contagion effects.
currency, rising inflation, and fears of contagion from emerging-market rout," Ravelas said in a separate interview, adding that market technicals are pointing to P54.00 as the next resistance.
Research has documented that we can catch each other's emotions, a phenomenon known as "emotional contagion," even at work.
M2 PHARMA-November 3, 2017-Gallagher Named Editor in Chief of Contagion
CONTAGION: HISTORICAL VIEWS OF DISEASES AND EPIDEMICS is an open collection exploring Harvard's history of medicine collection.
But, this study--the first to contrast dogs' behavioral responses to negative and positive emotions--shows that dogs can exhibit emotional contagion, a component of empathy.
Connectedness and Contagion: Protecting the Financial System from Panics
In the article titled "A Theoretical Argument Why the t-Copula Explains Credit Risk Contagion Better than the Gaussian Copula" [1], the name of the fourth author was given incorrectly as Satjaporn Tungsong.