Financial Stability Content

In recent months, we have seen many high-profile analyses arguing that bond mutual funds amplified stresses in financial markets during the start of the COVID-19 pandemic in March 2020. These analyses conclude that bond mutual funds therefore may require structural regulatory reforms...

VIEW AS PDF Why have bond mutual funds grown substantially in the past several years? There are two possible explanations, with very different implications: One view: large inflows to bond funds have been driven by yield-seeking or return-chasing behavior. This explanation is promoted...

Financial Stability Oversight Council Nonbank Designations Statement of Paul Schott Stevens President and CEO Investment Company Institute US Senate Committee on Banking, Housing, and Urban Affairs March 14, 2019 Washington, DC As prepared for delivery. Thank you, Chairman Crapo...

Policymakers around the globe are studying the turmoil in March 2020 related to the COVID-19 pandemic to determine what happened and why. Similar work is being done by academics and other analysts. Bond mutual funds have been one area of focus, and policymakers will be considering the...