This note ranks the sensitivities of emerging market economies' (EMEs') bond fund flows to changes in the US monetary stance and global risk aversion. Based on the sensitivities, we draw heat maps to indicate the economies that are more likely to suffer large outflows. We find that bond fund...

It is well documented in literature that funding condition has been subject to the undue influence of distorted incentives of banks to lend and borrow at quarter ends under Basel III. We investigate whether or not funding risk possibly also suffers the same. Using a state space model, we find...

The recent literature has argued for high concentration of earnings, differences in rates of return on assets and bequests as potential determinants of the high level of wealth concentration in the US. Analyzing the joint distribution of earnings, capital income and net worth, we find evidence...

The growing reliance on ETFs, especially for those ETFs being redeemed in cash, has raised concerns about their resilience to a market downturn. We show that abrupt redemptions of cash-redeemable ETFs may occur during a market downturn. In particular, an initial redemption shock to ETFs with a...