Newsletter
What's the Potential Impact of Force Majeure Claims on Financial Stability
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;
Access Documents
File(s):
File format is application/pdf
https://doi.org/10.21033/cfl-2021-459
Description: full text
Authors
Bibliographic Information
Provider: Federal Reserve Bank of Chicago
Part of Series: Chicago Fed Letter
Publication Date: 2021-09-01
Issue: 459
Pages: 7