Patrick E. McCabe
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View article: Monitoring reserve scarcity through nonbank cash lenders
Monitoring reserve scarcity through nonbank cash lenders Open
The quantity of reserves affects the cost and composition of funding in financial markets. Although the Federal Reserve effectively eliminated formal reserve requirements for depository institutions in 2020, banks still need reserves for l…
View article: Money Market Fund Repo and the ON RRP Facility
Money Market Fund Repo and the ON RRP Facility Open
Between January 2021 and June 2022, money market funds' (MMFs') investments in the Federal Reserve's Overnight Reverse Repurchase (ON RRP) facility rose by $2 trillion, while their private repo lending fell by almost $500 billion. These si…
View article: Money Market Fund Vulnerabilities: A Global Perspective
Money Market Fund Vulnerabilities: A Global Perspective Open
Money market funds (MMFs) are popular around the world, with over $9 trillion in assets under management globally. From their origins in the 1970s, MMFs have operated in a niche between the capital markets and the banking system, as invest…
View article: The Shift from Active to Passive Investing: Potential Risks to Financial Stability?
The Shift from Active to Passive Investing: Potential Risks to Financial Stability? Open
The past couple of decades have seen a significant shift in assets from active to passive investment strategies. We examine the potential effects of this shift for financial stability through four different channels: (1) effects on investm…
View article: The Shift from Active to Passive Investing: Potential Risks to Financial Stability?
The Shift from Active to Passive Investing: Potential Risks to Financial Stability? Open
The past couple of decades have seen a significant shift in assets from active to passive investment strategies. We examine the potential effects of this shift for financial stability through four different channels: (1) effects on investm…