This paper studies the role of mutual fund yield in driving investor flows and performance of bond funds. Using two … common measures, the SEC yield and 12-month distribution yield, we find strong evidence that investors tend to chase bond … funds with higher yields, even after controlling for total fund returns and fund ratings. Although bond funds with higher …

performance, risk management, and flows of bond mutual funds. Measuring active share at both the issue and issuer level, the … average bond fund has an issue-level (issuer-level) active share of over 90% (60%). Funds with higher issuer-level active … share persistently earn higher alphas, which helps explain the relatively slow growth of passively managed bond funds …

This paper assesses liquidity risk for the United States (U.S.) bond mutual funds industry and performs a range of … contagion analysis using data on fund flows and returns shows that Investment Grade (IG) corporate bonds funds, municipal bond … funds and government bond funds are more likely to spread distress to other fund categories than HY, EM and loan funds. When …

corporate bond portfolios. Specifically, risk-adjusted financial performance of 103 US and Eurozone socially responsible bond … funds is compared with a matched sample of conventional funds. During the period 2001-2014 socially responsible bond funds … outperformance is directly related to the exclusion of corporate bond issuers with poor corporate social responsibility (CSR …

In their seminal paper on bond fund performance, Blake, Elton and Gruber (1993) state that survivorship bias is … unimportant for this market segment. Many bond fund studies have since been published without treating survivorship bias despite … disappearance of bond funds comprehensively. As key determinants we identify fund size and flows. Compared to equity funds, returns …

We document significant outperformance by government bond funds on important macro announcement days such as FOMC and …

discrepancy causes alpha to deviate from the active bond selection performance it is supposed to measure. Performance ratings and …

We are the first to analyze bond mutual funds' permission and use of complex investment practices like derivatives … most complex investments do not affect fund performance or risk. However, interest rate futures (IRF) are harmful to bond … funds. Bond funds engaging in IRF (45.8% of all bond funds) underperform nonusers by economically meaningful 51 basis point …

This paper employs data on corporate bond mutual fund flows to investigate bond investments under low interest rates …. In response to the Fed’s lower interest rate policy, we find that investment-grade bond funds receive inflows, while high …-yield bond funds are not responsive. This result can not be explained by investors’ incentive to reach for yield, but by the …