This article examines the relationship between aggregate monthly mutual fund flows (sales, redemptions and net sales) and stock and bond market returns from 1961 through 1996. The sharp growth of mutual funds in recent years has raised concerns about whether mutual fund are responsible for the...

The Financial Economists Roundtable (FER) is a group of senior financial economists who have made significant contributions to the finance literature and seek to apply their knowledge to current policy debates. The Roundtable focuses on microeconomic issues in investments, corporate finance, and...

This paper outlines the fundamental economic forces that have led to the decline in traditional banking, that is the process of making loans and funding them by issuing short-dated deposits. The declining competitiveness of traditional banking may threaten financial stability by increasing bank...

In recent years, the traditional business of banks - making long-term loans and funding them by issuing short - dated deposits-has declined. This development has raised concerns that more banks will fail or be forced to assume greater risk to remain profitable. This article first examines the...

Using data on the monthly returns of hedge funds during the period 1990:01 through 1998:08, we estimate six-factor Jensen alphas for individual hedge funds employing eight different investment styles. We find that about 25 percent of hedge funds earn positive excess returns, and that the...

This study examines the performance of sixteen different hedge fund and commodity fund investment styles during rising and falling stock prices over the period 1990:01 through 1998:08. Since a primary motivation for investing in hedge funds and commodity funds is to diversify against falling...

The past decade's bull market in U.S. stock market and the experience in recent Asian financial crisis raised interesting questions on the impact of institutional investors (mutual funds, pension funds and hedge funds) on financial markets. Mutual funds in US have experienced unprecedented...

This paper outlines the fundamental economic forces that have led to the decline in traditional banking, that is the process of making loans and funding them by issuing short-dated deposits. The declining competitiveness of traditional banking may threaten financial stability by increasing bank...

Revolutionary changes, includingthe shrinking of traditional banking and the expansion of trading in foreign securities, have recently rocked financial markets.