Liquidity Shock Scenario
A liquidity shock scenario models a sudden decline in available market liquidity or funding capacity.
Category
Macro Collateral Stress
These concepts describe liquidity shocks, collateral discounts, funding spreads, and volatility scenarios used in risk analysis.
How to recognize this theme
Financial-stress terms that affect collateral and funding markets.
In a daily board, this category groups terms by their shared role. Look for four cards that describe the same mechanism, risk area, or workflow rather than four words that merely sound similar.
Educational context
These entries are vocabulary notes for learning. They are not project endorsements, token recommendations, exchange rankings, or trading signals.
Collateral Discount Rate
A collateral discount rate reduces collateral value in stress analysis to account for sale costs, volatility, or market depth.
Funding Spread Widening
Funding spread widening describes an increase in the extra return lenders demand above a reference rate.
Volatility Stress Test
A volatility stress test examines how positions, collateral, or systems behave under unusually large price movements.