Publications

June 2009 (Revised May 2010)
Case

BlackRock Money Market Management in September 2008 (A)

By: Kenneth A. Froot and David Lane

This case highlights the issues around money market mutual funds in the financial crisis of 2008. View Details

Keywords: BlackRock; Mutual Funds; Money Market; Investment Management; Bank Runs; 2008 Financial Crisis; Government Intervention In The Markets; GRG; Financial Management; Investment Funds; Crisis Management; Government and Politics; Financial Crisis; Financial Services Industry

Educators

June 2014
Article

Frictions in Shadow Banking: Evidence from the Lending Behavior of Money Market Funds

By: Sergey Chernenko and Adi Sunderam

We document the consequences of money market fund risk taking during the European sovereign debt crisis. Using a novel data set of security-level holdings of prime money market funds, we show that funds with large exposures to risky Eurozone banks suffered significant... View Details

Keywords: Money Market Mutual Funds; European Sovereign Debt Crisis; Runs; Contagion; Risk Taking; Investment Funds; Financial Crisis; Europe

June 20, 2011
Article

Don't Hobble Money Market Funds

By: Robert C. Pozen

Keywords: Money; Markets

February 1985 (Revised August 1994)
Case

MMP: Money Market Preferred Stock

Article

An Evaluation of Money Market Fund Reform Proposals

By: Samuel G. Hanson, David S. Scharfstein and Adi Sunderam

U.S. money market mutual funds (MMFs) are an important source of dollar funding for global financial institutions, particularly those headquartered outside the U.S. MMFs proved to be a source of considerable instability during the financial crisis of 2007–2009,... View Details

Keywords: Balance and Stability; Globalized Markets and Industries; Banks and Banking

December 16, 2012
Article

Not all Money Market Funds Are Equal

By: Robert C. Pozen and Theresa Hamacher

2012
Government Testimony

Perspectives on Money Market Mutual Fund Reforms

By: David S. Scharfstein

July 6, 2011
Article

Fine Time to Wade Into Money Market Funds

By: Robert C. Pozen and Theresa Hamacher

Keywords: Money; Markets

Research Summary

Fixed NAVs and Costly Puts: US Money Market Mutual Funds (with Peter Tufano)

US money market mutual fund investors have been granted an implicit put option that allows them to sell or redeem their shares at a fixed price of $1.00, regardless of the market value of the portfolio. We describe the institutional features that give rise... View Details

July 2010 (Revised December 2011)
Case

Controlling Hot Money

By: Robert C. Pozen

The manager of the Japan Equities Fund is faced with an increase in "hot money" moving quickly in and out of the Fund. This short-term trading is an attempt to take advantage of the difference between the closing times of the Tokyo and New York Stock Exchanges. The CFO... View Details

Keywords: Stocks; International Finance; Investment Funds; Governing Rules, Regulations, and Reforms; Market Timing; Market Transactions; Financial Services Industry; New York (city, NY)

Educators

2014
Working Paper

Modeling Money Market Spreads: What Do We Learn about Refinancing Risk?

By: Vincent Brousseau, Kleopatra Nikolaou and Huw Pill

03 Nov 2003
Research & Ideas

Making Money Making Movies

the summer issue of Marketing Science. Elberse discusses her research on the entertainment industry in this e-mail interview. Salls: Briefly describe the state of the motion picture industry today. Elberse: The U.S. theatrical motion... View Details

Keywords: by Manda Salls; Entertainment & Recreation; Motion Pictures & Video

April 2015
Article

Money Creation and the Shadow Banking System

By: Adi Sunderam

Many explanations for the rapid growth of the shadow banking system in the mid-2000s focus on money demand. This paper asks whether the short-term liabilities of the shadow banking system behave like money. We first present a simple model where households demand money... View Details

Keywords: Financial Instruments; Banks and Banking

21 Aug 2013
Research & Ideas

To Buy Happiness, Spend Money on Other People

gives some cash to two women in Harvard Square. The catch this time: Each of them must spend the money on someone else. "We've shown in our research that giving money to others actually does make people... View Details

Keywords: by Carmen Nobel

21 Feb 2005
Research & Ideas

The VC Quandary: Too Much Money

made available for investment has ebbed and flowed. That phenomenon seems to be shifting, he said. "One theory is today the money doesn't go away. The limited partner community has defined venture as an asset class; they're going to... View Details

Keywords: by Julie Jette; Financial Services

2015
Working Paper

On the Increasing Centralization of US Money and Credit

By: Amar Bhidé

My current work on the debt market liquidity (Bhidé 2015) and antecedent book (Bhidé 2010) critiques the de facto centralization of credit extension in the U.S. This essay examines how the increased centralization of credit maps into a decline in the decentralized... View Details

Keywords: Centralization; Money; Credit; United States

February 2018 (Revised June 2019)
Case

Jaguar Capital S.A.S., Take the Money and Run?

By: Nori Gerardo Lietz and Sayiddah Fatima McCree

In January 2014, Tomas Uribe and Rodrigo Sanchez-Rios of Jaguar Capital S.A.S. (Jaguar or Jaguar Capital), were considering an offer from White Stone, the world’s largest private equity real estate investor. Jaguar Capital needed capital to fund its investment thesis,... View Details

Keywords: Real Estate; Investing; Private Equity Financing; Deal Structuring; Emerging Market; Emerging Economies; Emerging Market Finance; International Entrepreneurship; Finance; Entrepreneurship; Agreements and Arrangements; Emerging Markets; Real Estate Industry; Retail Industry; Financial Services Industry; Colombia; Latin America; United States

Educators

June 1995
Teaching Note

ARPPS: Adjustable Rate Perpetual Preferred Stock and MMP: Money Market Preferred Stock TN

By: Andre F. Perold and Wai Lee

Keywords: Stocks

2014
Case

Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., LTD.

By: F. Warren McFarlan, Yongjun Jin and Xiaohui Li

Mobile Internet has imposed an increasing impact on traditional finance. Firstly, some financial business modules can be operated via mobile Internet, and the corresponding transaction cost is greatly reduced. For example, payment by traditional bank draft is replaced... View Details

Keywords: Finance; Internet; China; Mobile Devices; Internet and the Web; Mobile and Wireless Technology; China