Found 4 article(s) for author 'Mutual Funds'

Liquidity Transformation in Asset Management: Evidence form the Cash Holdings of Mutual Funds

Liquidity Transformation in Asset Management: Evidence form the Cash Holdings of Mutual Funds. Adi Sunderam, July 2016, Paper, “We study liquidity transformation in mutual funds using a novel data set on their cash holdings. To provide investors with claims that are more liquid than the underlying assets, funds engage in substantial liquidity management. Specifically, they hold substantial amounts of cash, which they use to accommodate inflows and outflows rather than transacting in the underlying portfolio assets. This is particularly true for funds with illiquid assets and at times of low market liquidity. We provide evidence suggesting that mutual funds’ cash holdings are not large enough to fully mitigate price impact externalities created by the liquidity transformation they engage in.Link

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Liquidity Transformation in Asset Management: Evidence from the Cash Holdings of Mutual Funds

Liquidity Transformation in Asset Management: Evidence from the Cash Holdings of Mutual Funds. Adi Sunderam, July 21, 2015, Paper. “Using a novel data set on the cash holdings of mutual funds, we show that cash plays an important role in how mutual funds provide liquidity to their investors. Rather than transacting in equities or bonds, mutual funds use cash to accommodate inflows and outflows. This is particularly true for funds with illiquid assets and at times of low aggregate market liquidity. We show that economies of scale in liquidity provision are limited for mutual funds. Mutual funds are large holders of cash in the aggregate…Link

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Untangling the Money Market Fund Problem: A Public-Private Liquidity Fund Proposal

Untangling the Money Market Fund Problem: A Public-Private Liquidity Fund Proposal. Jonathan W. Lim, January 10, 2014, Paper. “The 2008 Financial Crisis dramatically highlighted the systemic vulnerabilities of the multi-trillion dollar Money Market Mutual Fund (MMF) industry, which developed over the last 40 years as a vital part of the U.S. financial system. Yet, more than 5 years on, the problem of what to do with MMFs remains unsolved, with no broad consensus in development regarding the best way to address the systemic risks posed by these funds. This paper develops a three-part framework to assess the efficacy of existing…” Link verified March 28, 2014

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Cost-Benefit Analysis of Financial Regulation: Case Studies and Implications

Cost-Benefit Analysis of Financial Regulation: Case Studies and Implications. John Coates, January 6, 2014, Paper. “Some members of Congress, the D.C. Circuit, and legal academia are promoting a particular, abstract form of cost-benefit analysis for financial regulation: judicially enforced quantification. How would CBA work in practice, if applied to specific, important, representative rules, and what is the alternative? Detailed case studies of six rules – (1) disclosure rules under Sarbanes-Oxley Section 404, (2) the SEC’s mutual fund governance reforms, (3) Basel III’s heightened capital requirements for banks, (4) the Volcker…” Linkverified March 28, 2014

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