While the debate about which companies should and shouldn't be designated systemically important financial institutions has progressed, one paper takes a look at how portfolios should be managed in order to diminish the effects of a failed counterparty. To that end, the authors suggest portfolio managers expand their area of concern to "systemically important counterparties." These include "any institution the default of which is likely to have a significant impact on financial markets, taking in sovereigns as well as 'large financial institutions.' "

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