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 "text": "The theoretical link between hedge funds and systemic risk rests on limits to arbitrage: speculators' capital is finite, their capacity to supply liquidity depends on funding, and that funding can dry up abruptly in periods of financial distress, producing liquidity spirals amplified by rising return correlations, higher volatility, and flight to quality.",
 "author": {
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  "name": "Wulf A. Kaal",
  "identifier": "https://orcid.org/0009-0008-7840-1847"
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 "citation": "Wulf A. Kaal, Timothy A. Krause, Hedge Funds and Systemic Risk (2016). SSRN: https://ssrn.com/abstract=2748096",
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 "abstract": "These models rely on the concept that speculators' capital is not unlimited, but rather that their ability to provide liquidity is dependent on funding, and that this funding can suddenly dry up in periods of financial distress and lead to liquidity spirals.",
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