In its post-mortem on summer volatility, the Bank for International Settlements (BIS) found that while the conditions that drove leverage were well understood by the market players involved, the underlying dynamics of the resulting cross-asset price corrections carried several surprises. We highlight key observations made by Claudio Borio, head of the BIS Monetary and Economic Department, and Hyun Song Shin, economic adviser and head of Research at the BIS.
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