IDEAS home Printed from https://ideas.repec.org/p/fip/fednls/93386.html
   My bibliography  Save this paper

Preemptive Runs and the Offshore U.S. Dollar Money Market Funds Industry

Author

Abstract

In March 2020, U.S. dollar-denominated prime money market funds (MMFs) suffered heavy outflows as concerns about the COVID-19 pandemic increased in the United States and Europe. Investors redeemed their shares en masse not only from funds domiciled in the United States (“domestic”) but also from offshore funds. In this post, we use differences in the regulatory regimes of domestic and offshore funds to identify the impact of the redemption gates and liquidity fees recently introduced as part of MMF industry reforms in both the United States and Europe.

Suggested Citation

  • Marco Cipriani & Gabriele La Spada, 2021. "Preemptive Runs and the Offshore U.S. Dollar Money Market Funds Industry," Liberty Street Economics 20211122, Federal Reserve Bank of New York.
    • Handle: RePEc:fip:fednls:93386
    as

    Download full text from publisher

    File URL: https://libertystreeteconomics.newyorkfed.org/2021/11/preemptive-runs-and-the-offshore-u-s-dollar-money-market-funds-industry/
    File Function: Full text
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    money market funds; offshore run; redemption gates; liquidity fees; weekly liquid assets (WLA);
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fednls:93386. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gabriella Bucciarelli (email available below). General contact details of provider: https://edirc.repec.org/data/frbnyus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.