Researchers have proposed a new means of estimating the risk of contagion in the global financial system, presenting their results in a working paper published by the Bank for International Settlements.

Stefan Avdjiev, Paolo Giudici and Alessandro Spelta combine separate methodologies from the literature, making use of both market prices and exposures to create a network model of the global banking system. They combine data on credit default swap spreads with information on exposures from the