# kaal:claim:2748096-016

**Claim.** Even if the risks hedge funds pose to financial institutions are often overstated, liquidity risk remains a serious issue because of the critical linkages created by over-the-counter credit risk relations.

**Type.** mechanism  **Support.** argued

**Holds when.**

- applies where hedge fund exposures run through over-the-counter credit relationships

**Source quote.**

> While the risks to financial institutions are often overstated, liquidity risk remains a serious issue due to the critical linkages created by over-the-counter credit risk relations.

**From.** Wulf A. Kaal, Timothy A. Krause, *Hedge Funds and Systemic Risk* (2016), Hedge Funds' Contributions to the Financial Crisis of 2007-2008, page 7

**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.** defi, risk-and-incentives

**Keywords.** liquidity-risk, over-the-counter, credit-risk, interconnectedness

**Related claims.**

- supersedes: https://wulfkaal.github.io/claims/2470008-006

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