Search Results

SORT BY: PREVIOUS / NEXT
Keywords:leverage lending 

Report
Monetary Policy, Investor Flows, and Loan Fund Fragility

We show that monetary policy shocks have a positive effect on flows in bank-loan mutual funds. This relationship, however, is asymmetric: positive shocks cause small inflows, whereas negative shocks cause large outflows. Further, the effect of monetary policy shocks is stronger when short-term rates are higher. Finally, we document that large outflows from loan funds lead to significant declines in loan-level prices in the secondary leveraged loan market. Our results identify a novel channel of monetary policy transmission that not only affects a critical segment of the credit sector, but ...
Staff Reports , Paper 1008

FILTER BY Bank

FILTER BY Series

FILTER BY Content Type

Report 1 items

FILTER BY Author

FILTER BY Jel Classification

E52 1 items

G23 1 items

G28 1 items

FILTER BY Keywords

PREVIOUS / NEXT