Dynamic Liquidity Management by Corporate Bond Mutual Funds

2016 ◽  
Author(s):  
Hao Jiang ◽  
Ashley Wang
Keyword(s):  
Mutual Funds ◽  
Corporate Bond ◽  
Liquidity Management ◽  
Bond Mutual Funds

Dynamic Liquidity Management by Corporate Bond Mutual Funds

2020 ◽  
pp. 1-31 ◽  
Author(s):  
Hao Jiang ◽  
Dan Li ◽  
Ashley Wang
Keyword(s):  
Mutual Funds ◽  
Corporate Bond ◽  
Liquidity Management ◽  
Liquid Asset ◽  
Scale Down ◽  
Illiquid Asset ◽  
Bond Mutual Funds ◽  
Return Reversals ◽  
Liquid Asset Holdings ◽  
High Uncertainty

Abstract How do corporate bond mutual funds manage liquidity to meet investor redemptions? We show that during tranquil market conditions, these funds tend to reduce liquid asset holdings to meet redemptions, temporarily increasing relative exposures to illiquid asset classes. When aggregate uncertainty rises, however, they tend to scale down their liquid and illiquid assets proportionally to preserve portfolio liquidity. This fund-level dynamic management of liquidity appears to affect the broad financial market: Redemptions from the corporate bond fund sector lead to more corporate bond selling during high-uncertainty periods, which generates price pressures and predicts strong return reversals.

Performances and Flows of Corporate-Bond Mutual Funds

2007 ◽  
Author(s):  
Roberto C. Gutierrez ◽  
William F. Maxwell ◽  
Danielle Xu
Keyword(s):  
Mutual Funds ◽  
Corporate Bond ◽  
Bond Mutual Funds

Corporate bond mutual funds and asset fire sales

2020 ◽  
Vol 138 (2) ◽  
pp. 432-457 ◽  
Author(s):  
Jaewon Choi ◽  
Saeid Hoseinzade ◽  
Sean Seunghun Shin ◽  
Hassan Tehranian
Keyword(s):  
Mutual Funds ◽  
Corporate Bond ◽  
Fire Sales ◽  
Bond Mutual Funds

scholarly journals Reaching for Yield in Corporate Bond Mutual Funds

2017 ◽  
Vol 31 (5) ◽  
pp. 1930-1965 ◽  
Author(s):  
Jaewon Choi ◽  
Mathias Kronlund
Keyword(s):  
Mutual Funds ◽  
Corporate Bond ◽  
Reaching For Yield ◽  
Bond Mutual Funds
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