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Bibframe Work

Title
Asset fire sales (and purchases) in equity markets Asset fire sales (and purchases) in equity markets
Type
Text
Genre Form
electronic resource
Language
English
Classification
LCC: HB1 (Source: dlc)
Identified By
Lccn: 2005618335
Summary
"This paper examines asset fire sales, and institutional price pressure more generally, in equity markets, using market prices of mutual fund transactions caused by capital flows from 1980 to 2003. Funds experiencing large outflows (inflows) tend to decrease (increase) existing positions, which creates price pressure in the securities held in common by these funds. Forced transactions represent a significant cost of financial distress for mutual funds. We find that investors who trade against constrained mutual funds earn highly significant returns for providing liquidity when few others are willing or able. In addition, future flow-driven transactions are predictable, creating an incentive to front-run the anticipated forced trades by funds experiencing extreme capital flows"--National Bureau of Economic Research web site.
Authorized Access Point
Coval, Joshua Asset fire sales (and purchases) in equity markets
Authorized Access Point Variant
Stafford, Erik. Asset fire sales (and purchases) in equity markets
National Bureau of Economic Research. Asset fire sales (and purchases) in equity markets