We identify fixed-income mutual funds as an important contributor to the unusually high
selling pressure in liquid asset markets during the COVID-19 crisis. We show that mutual …

This article provides a critical appraisal of the March 2020 crisis in fixed income markets. We
synthesize the main events, characterize what appears to be an emerging consensus on …

The economics literature lacks articles that provide a broad roadmap—let alone a logical
explanation—of the new set of Federal Reserve policy tools that were created to counter the …

We estimate the option value of municipal liquidity by studying bond market activity and
public sector hiring decisions when government budgets are severely distressed. Using a …

We examine how the COVID-19 pandemic and subsequent policy actions impacted
municipal bond pricing through liquidity and credit risk channels. Focusing on narrow …

In the financial crisis and recession induced by the Covid-19 pandemic, many investment-
grade firms became unable to borrow from securities markets. In response, the Fed not only …

For over two centuries, the municipal (muni) bond market has been a source of systemic risk,
which returned early in the Covid-19 downturn when borrowing from securities markets …

For over two centuries, the municipal bond market has been a source of systemic risk, which
returned early in the Covid-19 downturn when borrowing from securities markets became …

We study how investors in the US municipal bond market price the state lockdowns
announced during the coronavirus (COVID) pandemic. To begin with, we examine the extent …

We explore the ties between bonds and individual dealers formed through home advantage
and the persistence of previous underwriting relationships. Building on these connections …