BEGIN:VCALENDAR
VERSION:2.0
PRODID:-//jEvents 2.0 for Joomla//EN
CALSCALE:GREGORIAN
METHOD:PUBLISH
BEGIN:VEVENT
UID:716155b33aa78bbe661e2ce1891af7f4
CATEGORIES:Seminars
CREATED:20150211T190738
SUMMARY:Gabriele La Spada - Princeton University (Job Market Seminar)
DESCRIPTION;ENCODING=QUOTED-PRINTABLE:<p style="text-align: justify;"><strong>Competition, Reach for Yield, and M
 oney Market Funds</strong></p><p style="line-height: normal;"><span style="
 font-size: 12pt; font-family: 'Times New Roman','serif';">Abstract:</span><
 /p><p style="text-align: justify;">Do asset managers reach for yield becaus
 e of competitive pressures in a low rate environment? I propose a tournamen
 t model of money market funds (MMFs) to study this issue. I show that funds
  with different costs of default respond differently to changes in interest
  rates, and that it is important to distinguish the role of risk-free rates
  from that of risk premia. In an environment in which funds care about rela
 tive performance, an increase in the risk premium leads funds with lower de
 fault costs to increase risk-taking, while funds with higher default costs 
 reduce risk-taking. Without changes in the risk premium, low risk-free rate
 s reduce risk-taking. I show that these predictions are consistent with the
  risk-taking of MMFs during the 2006-2008 period: When risk premia increase
 d, funds with low sponsor's reputation concerns increased risk-taking, whil
 e funds with high sponsor's reputation concerns decreased risk-taking. Furt
 her, I confirm the differential role of risk-free rate and risk premium to 
 explain changes in fund portfolios.</p>
DTSTAMP:20260404T104640Z
DTSTART:20150128T173000Z
DTEND:20150128T190000Z
SEQUENCE:0
TRANSP:OPAQUE
END:VEVENT
END:VCALENDAR