Friday, October 12, 2012

Data visualization: connectivity in CDO markets

click here for full version.

This is an illustration of the interconnectivity of CDO markets from Deus Ex Macchiatto.
All of the CDOs in a strongly connected subgraph depend on all of the others. You can’t value any one in isolation: you have to consider all of them together. So… how big do the strongly connected subgraphs get?
Financial fragility or robust self organization?

No comments:

Post a Comment