Bank Borrowings by Asset Managers Evidence from U.S. Open-End Mutual Funds and Exchange-Traded Funds

Fang Cai and Chaehee Shin
Additional contact information
Fang Cai: https://www.federalreserve.gov/econres/fang-cai.htm
Chaehee Shin: https://www.federalreserve.gov/econres/chaehee-shin.htm

No 2021-04-16-2, FEDS Notes from Board of Governors of the Federal Reserve System (U.S.)

Abstract: In this note, we look into investment funds' access to and usage of bank credit, based on a new dataset on credit line (and other types of loan) extension by top bank holding companies to open-end mutual funds and ETFs in the United States. We find that the aggregate amount of bank lending to open-end funds and ETFs was small and greatly fluctuated across time. Bank credit, particularly in the form of credit lines, has offered funds a flexible liquidity source from which they can draw down cash in times of excessive fund outflows, such as during the onset of the COVID-19 pandemic outbreak. In particular, funds that hold relatively more illiquid assets, such as bank loan funds, are more reliant on bank credit lines.

Date: 2021-04-16
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.federalreserve.gov//econres/notes/feds ... d-funds-20210416.htm (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgfn:2021-04-16-2

DOI: 10.17016/2380-7172.2887

Access Statistics for this paper

More papers in FEDS Notes from Board of Governors of the Federal Reserve System (U.S.) Contact information at EDIRC.
Bibliographic data for series maintained by Ryan Wolfslayer ; Keisha Fournillier ().