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The Limits of Market-Based Risk Transfer and Implications for Managing Systemic Risks

Author

Listed:
  • Mr. Nicolas R Blancher
  • François Haas
  • Mr. John Kiff
  • Ms. Oksana Khadarina
  • Mr. Paul S. Mills
  • Parmeshwar Ramlogan
  • Mr. William Lee
  • Ms. Yoon Sook Kim
  • Todd Groome
  • Mr. Shinobu Nakagawa

Abstract

The paper discusses the limits to market-based risk transfer in the financial system and the implications for the management of systemic long-term financial risks. Financial instruments or markets to transfer and better manage these risks across institutions and sectors are, as yet, either nascent or nonexistent. As such, the paper investigates why these markets remain "incomplete." It also explores a range of options by which policymakers may encourage the development of these markets as part of governments' role as a risk manager.

Suggested Citation

  • Mr. Nicolas R Blancher & François Haas & Mr. John Kiff & Ms. Oksana Khadarina & Mr. Paul S. Mills & Parmeshwar Ramlogan & Mr. William Lee & Ms. Yoon Sook Kim & Todd Groome & Mr. Shinobu Nakagawa, 2006. "The Limits of Market-Based Risk Transfer and Implications for Managing Systemic Risks," IMF Working Papers 2006/217, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2006/217
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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=19916
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    Cited by:

    1. David Blake & Christophe Courbage & Richard MacMinn & Michael Sherris, 2011. "Longevity Risk and Capital Markets: The 2010–2011 Update," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 36(4), pages 489-500, October.
    2. David Blake & Tom Boardman & Andrew Cairns, 2014. "Sharing Longevity Risk: Why Governments Should Issue Longevity Bonds," North American Actuarial Journal, Taylor & Francis Journals, vol. 18(1), pages 258-277.
    3. Mr. Rene Weber & David S. Gerber, 2007. "Aging, Asset Allocation, and Costs: Evidence for the Pension Fund Industry in Switzerland," IMF Working Papers 2007/029, International Monetary Fund.

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