Category Archives: Money Market Funds

Access to Safe Assets and Financial Stability

By | November 11, 2019

Courtesy of Marco Macchiavelli In September 2013, the Federal Reserve (Fed) introduced the Overnight Reverse Repurchase (ONRRP) facility to improve its control over short-term interest rates (Frost et al. 2015). To achieve this goal, the Fed offers safe assets in the form of overnight reverse repos to a broad range of market participants, including money… Read More »

Credit Ratings: Can’t Live with Them, Can’t Live Without Them

By | March 1, 2019

Courtesy of Stefano Lugo Credit ratings assigned by Credit Rating Agencies (CRAs) like Moody’s and Standard & Poor’s have long been relied on by investors and regulators alike. This gives CRAs significant influence over our financial markets. Ratings too severe can lead to a credit crunch, and ratings too generous can lead to a credit… Read More »

The Unintended Consequences of the 2014 Reform of Money Market Funds

By | November 15, 2018

Courtesy of Ramin Baghai, Mariassunta Giannetti and Ivika Jäger Financial regulation can have far-reaching consequences, some of which may not be intended by the regulator. In a new paper, we trace out the effects of recent money market regulatory reform, which had the objective of increasing the resilience of the US money market industry. We… Read More »