Cross-Asset Contagion

THE MECHANISM

How it works

Losses in one market can trigger margin calls or redemptions that force selling in otherwise unrelated assets.

EXPOSURE

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TRANSMISSION

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MEASURABLE EFFECT

THE EVIDENCE

What to measure

Track cross-asset correlations under stress, funding spreads, margin levels, liquidity depth and redemption pressure.

THE STRESS CHANNEL

When the mechanism matters

A bond-market funding squeeze can induce equity sales when leveraged investors raise cash across portfolios.

Interpretation trap

Correlation spikes do not establish the direction of causality without examining balance-sheet channels.

RESEARCH METHOD

How to verify the claim

Begin with the underlying balance-sheet, contract or market-series evidence rather than a secondary headline. Check the definition of each exposure, its reporting date, and the institution or jurisdiction to which it applies. For cross-asset contagion, a useful starting route is: FSB financial stability reports, central-bank market monitoring and transaction-level research.

PRIMARY-SOURCE STARTING POINT

Financial Stability Board ↗

This is an institutional research starting point, not a claim that the linked institution endorses BondStats or verifies every statement on this page.

BondStats independent research reference. Educational content, not investment advice. No live market values are asserted on this page; verify time-sensitive data against the original source.