Details for Talk on: 12.12.2017

  • Speaker: Steffen Schuldenzucker

  • Title: Strategic Formation of Financial Networks with Credit Default Swaps

  • Abstract: I study a setting in which banks enter strategically into two kinds of contracts with each other: debt (i.e., loans to other banks) and credit default swaps (CDSs, i.e., default insurance on other banks). Banks act under uncertainty about the future and only limited information about the actions of other banks. I want to understand the structure of the arising network of contracts and its exposure to systemic risk. 
    In this talk, I want to discuss my research questions and modeling assumptions. I would like to reflect together with you on 1) realism, 2) relevance, 3) feasibility of my approach.