The Finance Department at the Goethe University and the Leibniz Institute SAFE organize a seminar on
Global Fund Flows and Emerging Market Tail Risk (joint work with Karlye Dilts Stedman and Christian Lundblad)
Anusha Chari, University of North Carolina
Abstract: Global risk and risk aversion shocks have distinct distributional impacts on capital flows with salient consequences for tail risk in emerging markets. Open-end mutual fund trading provides a key mechanism linking shocks facing global investors to extreme capital flow realizations. The effects are heterogeneous across asset classes and fund types. The limited discretion and higher conformity of passive fund investments linked to benchmarking amplify pass-through effects that engender abnormal co-movements in emerging market flows.
