Financial Stability Content

ICI, SIFMA, and DTCC Leading Effort to Shorten US Securities Settlement Cycle to T+1, Collaborating with the Industry on Next Steps A Shorter Settlement Cycle Will Benefit Investors and Market Participant Firms by Reducing Systemic and Operational Risks Washington, DC/New York/London...

Even as the market turmoil triggered by strict government mandates and social distancing due to the COVID-19 health crisis raged in March 2020, ICI started studying how registered funds weathered the crisis. As the dust settled, we quickly identified a key factor that exacerbated...

On Closer Look, a Very Different Picture of Funds’ Role in the Commercial Paper Market VIEW AS PDF New analysis by ICI shows that prime money market funds did not pull back significantly from the commercial paper market during the height of the market turmoil and “dash for cash”...

VIEW AS PDF 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...

In the past decade, a number of regulators and academics have discussed concerns about the growth in the assets of bond mutual funds, as well as their increasing share of the bond market, especially the corporate bond market. 1 The concern is that bond fund investors, now playing a...

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...