10 lines
637 B
Markdown
10 lines
637 B
Markdown
# Moral Hazard
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A situation in [market](market.md) behaviour in which participants are encouraged to take overly risky positions because their exposure is based purely on upside and are isolated from downside of the positions failing.
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Often cited as a factor leading to the 2008 subprime mortgage crisis.
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See [credit default swaps](cds.md).
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## References
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1. Momtaz, Paul P. 2020. ‘Entrepreneurial Finance and Moral Hazard: Evidence from Token Offerings’. Journal of Business Venturing, 106001.
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1. Ball, Laurence M. The Fed and Lehman Brothers: setting the record straight on a financial disaster. Cambridge University Press, 2018. |