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Are retail prime money market fund investors increasingly more sensitive to stress events?

Author

Listed:
  • Kenechukwu E. Anadu
  • John Levin
  • Lina Lu
  • Antoine Malfroy-Camine
  • Nico Oefele

Abstract

In this note, we examine the redemption activity of retail investors in prime money market funds, over two stress periods in 2008 and 2020. We find that, on average, retail investors’ redemptions during 2020’s stress period were substantially larger than those from 2008’s.

Suggested Citation

  • Kenechukwu E. Anadu & John Levin & Lina Lu & Antoine Malfroy-Camine & Nico Oefele, 2025. "Are retail prime money market fund investors increasingly more sensitive to stress events?," Supervisory Research and Analysis Notes, Federal Reserve Bank of Boston, issue 2025-01, pages 1-15, January.
    • Handle: RePEc:fip:b00001:99402
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    References listed on IDEAS

    as
    1. Marco Cipriani & Gabriele La Spada, 2020. "Sophisticated and Unsophisticated Runs," Staff Reports 956, Federal Reserve Bank of New York.
    2. Antoine Bouveret & Antoine Martin & Patrick E. McCabe, 2022. "Money Market Fund Vulnerabilities: A Global Perspective," Staff Reports 1009, Federal Reserve Bank of New York.
    3. Lei Li & Yi Li & Marco Macchiavelli & Xing (Alex) Zhou, 2021. "Liquidity Restrictions, Runs, and Central Bank Interventions: Evidence from Money Market Funds [Dealer financial conditions and lender-of-last-resort facilities]," The Review of Financial Studies, Society for Financial Studies, vol. 34(11), pages 5402-5437.
    Full references (including those not matched with items on IDEAS)

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