Financial Stability and the Coronavirus Pandemic - October 19, 21, and 23, 2020

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The Atlanta Fed's Center for Financial Innovation and Stability and Georgia State University's Center for the Economic Analysis of Risk organized the conference "Financial Stability and the Coronavirus Pandemic," which was held online over October 19, 21, and 23, 2020. The workshop's goal was to bring together economists, finance professionals, risk management professionals, and regulators to discuss the effect of the pandemic on the financial system and the tools to moderate that impact.

Monday, October 19

Session I: Investment Funds and the Corporate Bond Market
Chair: Chester Spatt, Carnegie Mellon University
10:30 a.m. "Financial Fragility in the COVID-19 Crisis: The Case of Investment Funds in Corporate Bond Markets" Adobe PDF file format
Authors: Antonio Falato, Federal Reserve Board, Itay Goldstein, University of Pennsylvania, and Ali Hortaçsu, University of Chicago
Discussant: Yi Li, Board of Governors of the Federal Reserve System
11:10 "Does Mutual Fund Illiquidity Introduce Fragility into Asset Prices? Evidence from the Corporate Bond Market" Adobe PDF file format
Authors: Hao Jiang, Michigan State University, Yi Li, Board of Governors of the Federal Reserve System, Zheng Sun, University of California, Irvine, and Ashley Wang, Board of Governors of the Federal Reserve System
Discussant: Shiyang Huang, the University of Hong Kong)
11:50 "Does Liquidity Management Induce Fragility in Treasury Prices? Evidence from Bond Mutual Funds" Adobe PDF file format
Authors: Shiyang Huang, the University of Hong Kong, Wenxi Jiang, the Chinese University of Hong Kong, Xiaoxi Liu, Bank for International Settlements, and Xin Liu, Renmin University of China
Discussants: Antonio Falato, Federal Reserve Board
Wednesday, October 21

Session II: Large Corporate Loan Markets
Chair: Larry D. Wall, Federal Reserve Bank of Atlanta
10:30 a.m. "Nonbank Lending and Credit Cyclicality" Adobe PDF file format
Authors: Quirin Fleckenstein, New York University, Manasa Gopal, Georgia Institute of Technology, Germán Gutiérrez, New York University, and Sebastian Hillenbrand, New York University
Discussant: Tumar Kapan, International Monetary Fund
11:10 "Liquidity Insurance vs. Credit Provision: Evidence from the COVID-19 Crisis" Adobe PDF file format
Authors: Tumer Kapan, International Monetary Fund, and Camelia Minoiu, Federal Reserve Board
Discussant: Pascal Paul, Federal Reserve Bank of San Francisco
11:50 "The Credit Line Channel" Adobe PDF file format
Authors: Daniel L. Greenwald, MIT Sloan School of Management, John Krainer, Board of Governors of the Federal Reserve, and Pascal Paul, Federal Reserve Bank of San Francisco
Discussant: Manasa Gopal, Georgia Institute of Technology
Friday, October 23

Session III: Corporate Bond Market, COVID-19 and the Fed's Intervention
Chair: Glenn Harrison, Georgia State University
10:30 a.m. "Corporate Bond Liquidity During the COVID-19 Crisis" Adobe PDF file format
Authors: Mahyar Kargar, University of Illinois at Urbana-Champaign, Benjamin Lester, Federal Reserve Bank of Philadelphia, David Lindsay, University of California, Los Angeles, Shuo Liu, Tsinghua University, Pierre-Olivier Weill, University of California, Los Angeles, and Diego Zúñiga, University of California, Los Angeles
Discussant: Bin Wei, Federal Reserve Bank of Atlanta
11:10 "Corporate Bond Purchases After COVID-19: Who Did the Fed Buy and How Did the Markets Respond?" Adobe PDF file format
Authors: Thomas Flanagan, University of Michigan, and Amiyatosh Purnanandam, University of Michigan
Discussant: Mahyar Kargar, University of Illinois at Urbana-Champaign
11:50 "The Fed Takes on Corporate Credit Risk: An Analysis of the Efficacy of the SMCCF" Adobe PDF file format
Authors: Simon Gilchrist, New York University, Bin Wei, Federal Reserve Bank of Atlanta, Vivian Z. Yue, Emory University, and Egon Zakrajšek, Bank for International Settlements
Discussant: Amiyatosh Purnanandam, University of Michigan