C04: Regulating asset managers (2018-2021)
We took an empirical law-and-finance perspective on an important class of shadow banking activity: asset management. We asked what the observed shift of business to asset management implies for financial stability. More specifically, we investigated whether asset managers substitute for banks in providing liquidity to financial markets. We focused on hedge funds, money market funds and plain-vanilla bond mutual funds, and we have paid particularly close attention to the institutional and regulatory details.