Debt funds under scrutiny over redemptions

exit_adobe_575x375_3September2020
By Jasper Cox
03 Sep 2020

Market observers believe that investors in open-ended debt funds need to be disincentivised more than they are at present from scrambling to liquidate their holdings in a market downturn.

As investors grappled with the coronavirus pandemic in the spring, markets plummeted and investors sought redemptions from debt funds.

A paper from Antonio Falato of the Federal Reserve, alongside academics Itay Goldstein and Ali Hortaçsu, found that corporate bond outflows were “far greater than anything they experienced in ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial