Does Mutual Fund Fragility Impact Primary Market Pricing? Evidence from Commercial Paper
Year: 2025
Type: article
Abstract: Investor flows in open-end mutual funds, along with their inherent liquidity mismatches and potential fragility risks, can significantly impact the pricing of assets these funds invest in. While much of the existing research has focused on these effects within the secondary markets for equities and bonds, this note, based on a working paper by Li, Tibay, and Wang (2024), provides evidence on how shocks from investor flows in prime money market funds (MMFs) influence the pricing and issuance in the primary markets for commercial paper (CP).
Source: FEDS Notes
Authors: Yi Li, Sean Tibay, Ashley W. Wang
Institutions: Federal Reserve, Federal Reserve Board of Governors
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4407487029