Monitoring the Liquidity Profile of Mutual Funds
Abstract: Policymakers and academics have been particularly attuned to the issues of liquidity transformation and first mover advantage at open-end mutual funds. Open-end mutual funds engage in liquidity transformation because they promise one-day redemptions on their assets, even when the invested assets have low or uncertain liquidity.
File(s): File format is text/html https://www.federalreserve.gov//econres/notes/feds-notes/monitoring-the-liquidity-profile-of-mutual-funds-20200529.htm
Part of Series: FEDS Notes
Publication Date: 2020-05-29
Note: This note was updated on July 10, 2020 to extend the analysis through the COVID-19 outbreak.