Tuesday, July 19, 2016

Money Market Funds at the Zero Bound (plus some vice on the side)

I'm treading on FT Alphaville's Izabella Kaminska's turf (see below).

Long time readers may remember one of this article's co-authors, Marcin Kacperczyk, as the co-author of one of our favorite papers "The Price of Sin: The Effects of Social Norms on Markets" which we turned into a virtual cottage industry by periodically checking in on a portfolio of vice-related equities (it outperformed over most time periods)

From VoxEU:

The unintended consequences of the zero lower bound policy for the money market funds industry 
Marco Di Maggio, Marcin Kacperczyk 19 July 2016