Open access
Aug 2026
Liquidity Transformation Risks in U.S. Bank Loan and High-Yield Mutual Funds: A 2026 Update
Mutual funds (MFs) and other open-ended collective investment funds engage in liquidity transformation—they offer investors daily redemptions while investing in assets that may take longer than a day to sell without significant price impact. This activity is particularly salient for corporate debt funds, where large in...
Kenechukwu Anadu, Sean Baker, Fang Cai et al.
· FEDS Notes · 0 citations