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• Article | Journal of Financial Economics | March 2020

  Do Fire Sales Create Externalities?

  Sergey Chernenko and Adi Sunderam

  We develop three novel measures of how much of the price impact of their trading different mutual funds internalize. We show that mutual funds that internalize more of their price impact hold larger cash buffers and use these buffers more aggressively to accommodate inflows and outflows. As a result, stocks held by these funds have lower volatility, and flows out of these funds have smaller spillover effects on other funds holding the same securities. Our results provide evidence of meaningful fire sale externalities in the mutual fund industry.

  Keywords: fire sales; externalities; Investment Funds; Price; Financial Liquidity; Management;

  Citation:

  Chernenko, Sergey, and Adi Sunderam. "Do Fire Sales Create Externalities?" Journal of Financial Economics 135, no. 3 (March 2020): 602–628.  View Details

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• Case | HBS Case Collection | March 2019 (Revised February 2020)

  OnDeck Capital, Inc.

  David Scharfstein and Juliane Begenau

  Keywords: loans; funding;

  Citation:

  Scharfstein, David, and Juliane Begenau. "OnDeck Capital, Inc." Harvard Business School Case 219-100, March 2019. (Revised February 2020.)  View Details

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• Case | HBS Case Collection | January 2014 (Revised January 2020)

  The Case of the Unidentified Financial Firms

  David Scharfstein

  Keywords: financial firms; bank holding companies; Banking Industry;

  Citation:

  Scharfstein, David. "The Case of the Unidentified Financial Firms." Harvard Business School Case 214-072, January 2014. (Revised January 2020.)  View Details

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