The unintended impact of collateral on financial stability

Initial margin requirements for OTC derivatives can increase risk of contagion, writes economist


To mitigate financial stability risks, policy-makers and regulators should be able to measure and analyse contagion – that is, the spread of losses and defaults through the financial system. I have been working on this problem with Paul Glasserman at Columbia Business School and Peyton Young at the London School of Economics. We recently developed a network model to study the impact of margin requirements and stay rules in bankruptcy and resolution regimes in over-the-counter derivatives on

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here