Kacperczyk, Marcin; Schnabl, Philipp - In: The Quarterly Journal of Economics 128 (2013) 3, pp. 1073-1122
We examine the risk-taking behavior of money market funds during the financial crisis of 2007--2010. We find that (1) money market funds experienced an unprecedented expansion in their risk-taking opportunities; (2) funds had strong incentives to take on risk because fund inflows were highly...