Contagion can be rapid, unpredictable and destabilising.
When a financial institution gets into trouble, it can cause a chain reaction, punishing investors, banks and even countries.
We discuss what factors cause these crises to spread and what we should do about it as investors.
And in today’s Dumb Question of the Week: What is a CoCo, and are they about to pop?
- The Unholy Trinity of Financial Contagion
- Financial contagion in the era of globalised banking | OECD