Open-ended bond funds: systemic risks and policy implications

Venue :Online Seminars
Host Name :The SEACEN Centre
Date From :17 Mar 2022
Date To :17 Mar 2022

Descriptions


SEACEN Online Seminar Series, WB02/2022: 
Open-Ended Bond Funds: Systemic Risks & Policy Implications

This online event is scheduled for 17 March 2022. 4 PM MYT (GMT+8)
This seminar will be hosted on The SEACEN Centre Webex platform. 
Registrants will receive the Webex link separately after completing this form.

Speakers: Stijn Claessens (BIS) and Ulf Lewrick (BIS).
Moderator: Prakash Kannan (MD, Chief Economist, Head of Total Portfolio Management, GIC)


About This Seminar:
Open-ended funds, i.e., non-bank financial intermediaries that invest in bonds, have grown rapidly over the past two decades.  Their business model and role in recent events suggest that they can amplify stress in financial markets.  Despite having tools to deal with large investor redemptions in the presence of liquidity mismatches, bond OEFs had to liquidate assets on a large scale in the March 2020 market turmoil.  In aggregate, this added to bond market pressures.  Without central bank interventions, broader fire sale dynamics could have been triggered.  Regulation that takes a macroprudential perspective of the sector could support financial stability by ensuring that tools internalise the effect of spillovers arising from bond OEFs' actions.

Link to paper: https://www.bis.org/publ/qtrpdf/r_qt2112c.htm