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The minimum balance at risk: A proposal to mitigate the systemic risks posed by money market funds
McCabe, Patrick E.; Cipriani, Marco; Holscher, Michael; … - 2012
proposal would require that a small fraction of each MMF investor's recent balances, called the minimum balance at risk (MBR …, when the risk of MMF losses is remote, subordination would have little effect on incentives. We use empirical evidence …
Persistent link: https://www.econbiz.de/10010283548
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Money market fund vulnerabilities: A global perspective
Bouveret, Antoine; Martin, Antoine; McCabe, Patrick E. - 2022
funds that offer private money-like assets with features similar to those of bank deposits. Hence, they are vulnerable to … runs that arise from liquidity transformation and from sudden changes in investor perceptions of the funds' ability to …
Persistent link: https://www.econbiz.de/10013330024
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Gates, fees, and preemptive runs
Cipriani, Marco; Martin, Antoine; McCabe, Patrick; … - 2014
We build a model of a financial intermediary, in the tradition of Diamond and Dybvig (1983), and show that allowing the intermediary to impose redemption fees or gates in a crisis - a form of suspension of convertibility - can lead to preemptive runs. In our model, a fraction of investors...
Persistent link: https://www.econbiz.de/10011340960