Liability Structure and Risk Taking: Evidence from the Money Market Fund Industry
研究了2014年货币市场基金改革如何改变基金负债结构，导致受影响基金增加风险承担并减少对安全发行人的融资。
Abstract How does the structure of financial intermediaries’ liabilities affect their asset holdings? We investigate the consequences of the 2014 money market fund (MMF) reform, which imposed redemption gates and liquidity fees on prime MMFs and forced prime funds marketed to institutional investors to switch from constant to floating net asset value. These changes made prime MMFs’ liabilities less money-like. As a consequence, the affected MMFs experienced an increase in flow–performance sensitivity and started taking more risks. In addition, the total funding provided by MMFs to the corporate sector, and especially to safer issuers, has decreased.