Järvenpää, Maija; Paavola, Aleksi - 2021 - This version: February 3, 2021
An asset is money-like if investors have no incentives to acquire costly private information on the underlying … collateral. However, privately provided money-like assets-like prime money market fund (MMF) shares-are prone to runs if … investors suddenly start to question the value of the collateral. Therefore, for risky assets, lack of money-likeness is a …