Contagion and Novation: Difference between pages

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imported>Doug Williamson
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Contagion is the risk that the failure of one participant in financial markets might have widespread secondary adverse effects throughout financial markets, the wider economy or both.  
''Law.'' 


#A method of loan transfer, which transfers the rights and obligations of a lender by creating in law a new ('nova') contract between the parties, on the same terms as the original agreement except that the transferee has taken the place of the transferor.
#More generally, the legal process of creating a new contract, with the commercial effect of transferring legal rights and obligations. Another example is the novation of trading contracts through a central counterparty.


==See also==
 
*[[Systemic risk]]
== See also ==
* [[Substitution]]
* [[Assignment]]
* [[Sub-participation]]
* [[Clearing house]]
* [[Central counterparty]]
 
[[Category:Long_term_funding]]
[[Category:Compliance_and_audit]]
[[Category:Treasury_operations_infrastructure]]

Revision as of 17:01, 19 April 2015

Law.

  1. A method of loan transfer, which transfers the rights and obligations of a lender by creating in law a new ('nova') contract between the parties, on the same terms as the original agreement except that the transferee has taken the place of the transferor.
  2. More generally, the legal process of creating a new contract, with the commercial effect of transferring legal rights and obligations. Another example is the novation of trading contracts through a central counterparty.


See also