Systemic Risk

The subprime mortgage crisis is a complex event that triggered a global financial earthquake, causing widespread economic devastation and unprecedented government intervention.

Explore the Long-Term Capital Management crisis, a pivotal moment in global financial history, highlighting risks of complex investment strategies, systemic risk, and inadequate regulation.

Market Volatility and Reflexivity explores the rapid growth of hedge funds, reflexivity, and its impact on global financial markets.

The evolution of derivatives from standardized instruments to custom-made over-the-counter contracts has raised concerns about transparency, regulation, and systemic risk in modern finance.

Financial markets exhibit unusual behavior with higher frequency of extreme events such as large market drops or rises than expected under a normal distribution.