Feb
21

The Risk of a Panic in the Bond Mutual Fund Market

By

There’s a growing risk that credit woes will incite banklike runs on bond mutual funds.

That’s the message from the latest in a series of studies from the Federal Reserve Bank of New York on how market liquidity has changed since the crisis. In two investigations, New York Fed researchers lay out a situation that shows how fire sales caused by problems at some funds could lead to losses that are broader than a decade ago.

Some will blame new regulations that have curtailed the ability of investment banks to act as middlemen. It’s a weak argument, though, and one that the New York Fed tackled in a separate study last October…

The Risk of a Panic in the Bond Mutual Fund Market

Share
Categories : Uncategorized

Leave a Reply

You must be logged in to post a comment.