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Home > Financial Stability > Financial Stability Paper No. 42: Simulating stress across the financial system: resilience of corporate bond markets and the role of investment funds – Yuliya Baranova, Jamie Coen, Pippa Lowe, Joseph Noss and Laura Silvestri
 

Financial Stability Paper No. 42: Simulating stress across the financial system: resilience of corporate bond markets and the role of investment funds – Yuliya Baranova, Jamie Coen, Pippa Lowe, Joseph Noss and Laura Silvestri

12 July 2017

Financial Stability Paper No. 42: Simulating stress across the financial system: resilience of corporate bond markets and the role of investment funds
Yuliya Baranova, Jamie Coen, Pippa Lowe, Joseph Noss and Laura Silvestri

This paper provides a first step in developing a system-wide stress simulation. The model incorporates several important features of the financial system. These include several types of institution (including banks and non-banks) and how their actions may propagate and amplify stress. Rather than attempting to predict outcomes of a given stress scenario for financial sector balance sheets, it seeks to explore those conditions under which systemic stress may crystallise.

Foreword by Alex Brazier, Executive Director and member of the Financial Policy Committee


Stressing the financial system. Click to view enlarged version

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