We conjecture that mutual funds with large shares of outstanding bond issues are more inclined to internalize the negative price spillovers of fire sales and thus sell their holdings in those issues, to a lower extent, when they experience redemptions. We provide evidence consistent with this conjecture and further show that ownership concentration limits bonds’ exposures to flow-induced fire sales. We exploit variation in negative spillovers arising from the Fed’s SMCCF to confirm the economic mechanism and explore our findings’ implications for fund performance and fire-sale spillovers to other funds.

中文翻译：

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债券价格脆弱性与共同基金行业结构

我们推测，持有大量未偿还债券的共同基金更倾向于将减价抛售的负面价格溢出内部化，从而在赎回时以较低的程度出售所持有的这些债券。我们提供了与这一猜想相一致的证据，并进一步表明，所有权集中度限制了债券因流量引发的抛售而面临的风险。我们利用美联储 SMCCF 产生的负面溢出效应的变化来确认经济机制，并探讨我们的研究结果对基金业绩和减价抛售对其他基金的溢出效应的影响。