The Default Contagion Mechanism and Preventive Analysis of Credit Assets

摘要

Under moderately tight monetary policy,the research on default contagion among credit assets is very important.In this paper,the remarkable similarity between default contagion and biological infection is discovered,for the first time,by analyzing contrastively their infectors and transmitting process.Based on the similarity,virus infection can be used for reference to do default contagion research.The authors analyze default contagion from the new perspective-taking default as contagious virus,and model difference equations to depict default contagion process.Finally the factors and their influence are summarized and precautions of default contagion are suggested.