What's the Potential Impact of Force Majeure Claims on Financial Stability

Alessandro Cocco
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Alessandro Cocco: https://www.chicagofed.org/people/c/cocco-alessandro

Chicago Fed Letter, 2021, issue 459, 7

Abstract: This article examines the potential aggregate impact on financial stability of several bilateral force majeure claims filed at approximately the same time in one or more markets. One and a half years after the pandemic started, I take stock of the developments involving force majeure claims thus far, and conclude that the likelihood of these claims creating a systemic threat to financial stability is low.

Keywords: Force Majeure; Mortgage-Backed Securities; Derivative Contracts; Covid-19 (search for similar items in EconPapers)
JEL-codes: B26 G21 (search for similar items in EconPapers)
Date: 2021
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