Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 3, 2020 erstellt
Description:
Using granular data about government bonds, we find that dealer networks undergo significant changes after the arrival of new public information. Following the release of macroeconomic data, dealer intermediation increases, the dealers' inventory changes and more bonds circulate through the networks, and dealer networks become larger. However, the incidence of contagion also increases. Contagion occurs when a failure by one trader to deliver securities for settlement cascades through the network. Together, these changes that networks undergo around news events suggest that larger dealer networks create a trade-off between intermediation benefits and counterparty risk