Neglected Risks, Financial Innovation, and Financial Fragility

We present a standard model of financial innovation, in which intermediaries engineer securities with cash flows that investors seek, but modify two assumptions. First, investors (and possibly intermediaries) neglect certain unlikely risks. Second, investors demand securities with safe cash flows.

本文提出了一个金融创新的标准模型，该模型中金融中介会为投资者创设契合其现金流需求的证券；与此同时，本文对两项核心假设作出了修正：其一，投资者（乃至部分金融中介）会忽视部分发生概率极低的风险；其二，投资者偏好具备安全现金流的证券。