Debt funds under scrutiny over redemptions

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 ...

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