The role of institutional investors in propagating the crisis of 2007-2008.

By Alberto Manconi, Massimo Massa, A. Yasuda. 2012

311 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/5b863705b5b3ddeff4648201cca68893d94a2c83

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Citations in the corpus

Investor Flows and Fragility in Corporate Bond Funds (2017, background): “, Morris and Shin (1998) and Goldstein and Pauzner (2005) – and show how complementarities will generate this amplification of outflows following bad performance.”
Fire sales, indirect contagion and systemic stress testing (2017, unknown): “…is ample empirical evidence that such deleveraging occurred on a large scale in 2008, leading to cross-asset contagion and amplification of losses in the financial system [Kashyap et al., 2008, Brunnermeier and Pedersen, 2009, Khandani and Lo, 2011, Manconi et al., 2012, Cont and Wagalath, 2016].”
Institutional Investor Stability and Crash Risk: Monitoring versus Short-Termism? (2013, background): “First, if monitoring is costly and/or time consuming, institutional investors may just sell off their stocks and bonds in response to unfavourable performance rather than influencing corrective action (Coffee, 1991; Manconi et al., 2012).”
Institutional Trading and Stock Resiliency: Evidence from the 2007-2009 Financial Crisis (2013, unknown): “Manconi, Massa, and Yasuda (2012) show that mutual funds with heavy exposure to illiquid securitized bonds sold their holdings of liquid assets, such as corporate bonds, and played a role in propagating the crisis from securitized bonds to corporate bonds.”
The Rise of Shadow Banking: Evidence from Capital Regulation (2018, background): “(8)Manconi et al. (2012) and Coval and Stafford (2007) provide evidence that mutual fund outflows can exert downward price pressure in bond and equity markets, respectively. (9)Bord and Santos (2012) carefully compare average yearly dollar volume of U.”