How Syndicated Lending Turns Small Shocks Into A Big Problem

http://ift.tt/1Jx48x8

A new BIS working paper finds that syndicated interconnectedness causes relatively mild shocks, if they affect the entire network, to be more problematic than the failure of a single active member In 2007, before the financial crisis started unfolding, syndicated loans made up 40% of cross-border funding to US companies and two-thirds of cross-border funding […]

The post How Syndicated Lending Turns Small Shocks Into A Big Problem appeared first on ValueWalk.

via ValueWalk http://ift.tt/N5EEMJ