Network valuation in financial systems

P Barucca, M Bardoscia, F Caccioli… - Mathematical …, 2020 - Wiley Online Library
We introduce a general model for the balance‐sheet consistent valuation of interbank claims
within an interconnected financial system. Our model represents an extension of clearing …

Measures of systemic risk

Z Feinstein, B Rudloff, S Weber - SIAM Journal on Financial Mathematics, 2017 - SIAM
Systemic risk refers to the risk that the financial system is susceptible to failures due to the
characteristics of the system itself. The tremendous cost of systemic risk requires the design …

The joint impact of bankruptcy costs, fire sales and cross-holdings on systemic risk in financial networks

S Weber, K Weske - Probability, Uncertainty and Quantitative Risk, 2017 - Springer
The paper presents a comprehensive model of a banking system that integrates network
effects, bankruptcy costs, fire sales, and cross-holdings. For the integrated financial market …

An optimization view of financial systemic risk modeling: Network effect and market liquidity effect

N Chen, X Liu, DD Yao - Operations research, 2016 - pubsonline.informs.org
Financial institutions are interconnected directly by holding debt claims against each other
(the network channel), and they are also bound by the market when selling assets to raise …

Financial contagion and asset liquidation strategies

Z Feinstein - Operations Research Letters, 2017 - Elsevier
This paper provides a framework for modeling the financial system with multiple illiquid
assets during a crisis. This work generalizes the paper by Amini et al.(2016) by allowing for …

Systemic risk and central clearing counterparty design

H Amini, D Filipović, A Minca - Swiss Finance Institute Research …, 2015 - papers.ssrn.com
We examine the effects on a financial network of multilateral clearing via a central clearing
counterparty (CCP) from an ex ante and ex post perspective. The CCP is capitalized with …

[PDF][PDF] Dynamic clearing and contagion in financial networks

T Banerjee, A Bernstein, Z Feinstein - arXiv preprint arXiv …, 2018 - researchgate.net
In this paper we will consider a generalized extension of the Eisenberg-Noe model of
financial contagion to allow for time dynamics in both discrete and continuous time …

To fully net or not to net: Adverse effects of partial multilateral netting

H Amini, D Filipović, A Minca - Operations Research, 2016 - pubsonline.informs.org
To Fully Net or Not to Net: Adverse Effects of Partial Multilateral Netting Page 1 OPERATIONS
RESEARCH Vol. 64, No. 5, September–October 2016, pp. 1135–1142 ISSN 0030-364X (print) …

Optimal network compression

H Amini, Z Feinstein - European Journal of Operational Research, 2023 - Elsevier
This paper introduces a formulation of the optimal network compression problem for
financial systems. This general formulation is presented for different levels of network …

Sensitivity of the Eisenberg--Noe Clearing Vector to Individual Interbank Liabilities

Z Feinstein, W Pang, B Rudloff, E Schaanning… - SIAM Journal on …, 2018 - SIAM
We quantify the sensitivity of the Eisenberg--Noe clearing vector to estimation errors in the
bilateral liabilities of a financial system. The interbank liabilities matrix is a crucial input to the …