Well, the book (z/OS DFSMS Managing Catalogs) has this to say:

The system applies the parameters in IGGCATxx, LOADxx, and SYSCATxx in the following order: 1. Parmlib member IGGCATxx, if specified, takes the highest priority, followed by...
2. Parmlib member LOADxx followed by...
3. SYSCATxx member of SYS1.NUCLEUS followed by...
4. System defined defaults

Not everything in SYSCATxx and LOADxx can be put into IGGCATxx. In particular, it's impossible for the system to find the correct catalog containing the entry for the parmlib concatenation data sets in it for the purpose of locating the IGGCATxx member in the first place, without having some other place to put the master catalog name and volume serial.

jo.skip.robin...@sce.com (J O Skip Robinson) wrote:
Ah, we don't use IGGCATxx. There is also the ancient SYSCATLG member of 
SYS1.NUCLEUS. I'm sure that LOADxx overrides SYSCATLG, but what about IGGCATxx? 
If these members specify different values for ALIASLEVEL, who wins the thumb 
wrestle?

--
John Eells
z/OS Technical Marketing
IBM Poughkeepsie
ee...@us.ibm.com

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