# kaal:claim:2748096-013

**Claim.** Hedge funds' risk management practices are typically evolved enough to constitute a major barrier to systemic shocks, and their trading counterparties and lenders further help prevent losses large enough to disrupt the financial system.

**Type.** mechanism  **Support.** asserted

**Holds when.**

- assumes counterparties and lenders actively monitor fund exposures

**Source quote.**

> Hedge funds' risk management practices are typically so evolved that they constitute a major barrier to systemic shocks. Hedge funds' counterparties in trades and lenders to hedge funds can also help prevent large losses that could disrupt the financial system.

**From.** Wulf A. Kaal, Timothy A. Krause, *Hedge Funds and Systemic Risk* (2016), Hedge Funds' Contributions to the Financial Crisis of 2007-2008, page 6

**Cite as.** Wulf A. Kaal, Timothy A. Krause, Hedge Funds and Systemic Risk (2016). SSRN: https://ssrn.com/abstract=2748096

**Verify.** sha256 of source PDF `8f30260f2c1db728b45c4f3b9b7c64358cf9d3217277bc3c63a910c32f87b508` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Krause%20-%202016%20-%20Hedge%20Funds%20and%20Systemic%20Risk.pdf

**Topics.** risk-and-incentives, compliance, systemic-risk, private-funds

**Keywords.** risk-management, counterparty-monitoring, systemic-risk-mitigation, hedge-funds

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.