Discussion Paper

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.


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Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2020-05-29

Number: 2020-05-29

Note: This note was updated on July 10, 2020 to extend the analysis through the COVID-19 outbreak.