Shares, assets, and financial relationships are held and engaged in at a greater degree over time.
[3] The Crises have played a major role in developing the understanding of financial networks.
In 1998, the crash of Long-Term Capital Management (LTCM) exposed their underlying importance.
[4] In particular, the LTCM case highlighted the hidden correlations inherent in financial networks.
LTCM took on a significant amount of risk (at one point leveraged 25:1) to trade on this relationship, while underestimating these correlations.
[14] Battiston, et al. utilized centrality to develop the DebtRank algorithm, a means to assess the systemic risk certain institutions can pose based on their connectedness and debt levels.