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 investor redemptions during stress periods could result in fire sales that adversely affect underlying markets (see, e.g., Goldstein, Jiang, and Ng, 2017; Chernenko and Sunderam, 2020; Falato, Goldstein, and Hortaçsu, 2021; Federal Reserve Board, 2025).
States and localities are relied upon to implement macroeconomic stabilization policies and ensure service delivery in times of crisis. In April 2020, the introduction of the Municipal Liquidity Facility (MLF) added an emergency lending instrument to the policy arsenal, guaranteeing liquidity, but at a price. Using a r...
Andrew F. Haughwout, Benjamin Hyman, Or Shachar· American Economic Journal: E...· 1 citation
This paper shows that monetary policy changes the risk composition of bank lending by altering the perceived tail risk of bank equity: when FOMC announcements compress the likelihood of costly low-equity states, banks originate riskier commercial and industrial loans. We measure bank-specific tail-risk shocks using equ...
Xu-Dong An, Jan Harren, Saket Hegde et al.· CESifo working papers· 0 citations
This article analyzes the current situation on the Russian stock market, characterized by negative dynamics in key indices, declining share prices of major issuers, and growing tensions in the corporate debt segment. The reasons for the precipitous decline in individual company shares are examined, related to dividend...
E. I. Luneva· EKONOMIKA I UPRAVLENIE: PROB...· 0 citations
Using historical data on U.S. commercial bank balance sheets, we show that banks’ maturity mismatch has more than tripled since the mid-1980s, moving in close lockstep with declining interest rates and term premia. We rationalize these trends in a model of bank portfolio choice in which banks must cover operating costs...
Thomas M. Mertens, Pascal Paul, Andrés Schneider· Federal Reserve Bank of San...· 0 citations
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