Ok, so perhaps I should call it a gray swan, where an event causing a rapid loss of collateral is highly unlikely to the extent that market participants are willing to take a risk.

Most would consider a bank failure a black swan, even though we all know that technically it can happen.

Written by

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store