Arbeitspapier
Redemption in kind and mutual fund liquidity management
Open-end mutual funds can use redemption in kind to satisfy investor redemptions by delivering securities instead of cash. We find that funds that reserve their rightsto redeem in kind experience less redemption after poor performance. Evidence from actual in-kind transactions reveals several unique mechanisms for redemption in kind to mitigate fund runs, including the delivery of more illiquid stocks and stocks with greater tax overhang.Funds also suffer less from the adverse impact of outflows on their performance.On the other hand, redeeming investors bear significant liquidation costs when they are forced to sell securities on their own.
- Sprache
-
Englisch
- Erschienen in
-
Series: CFR Working Paper ; No. 21-11
- Klassifikation
-
Wirtschaft
Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors
Financial Institutions and Services: Government Policy and Regulation
- Thema
-
redemption in kind
mutual funds
liquidity management
financial fragility
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Agarwal, Vikas
Ren, Honglin
Shen, Ke
Zhao, Haibei
- Ereignis
-
Veröffentlichung
- (wer)
-
University of Cologne, Centre for Financial Research (CFR)
- (wo)
-
Cologne
- (wann)
-
2021
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:45 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Agarwal, Vikas
- Ren, Honglin
- Shen, Ke
- Zhao, Haibei
- University of Cologne, Centre for Financial Research (CFR)
Entstanden
- 2021
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