Author(s):Giovanni Donato, Cédric Tille Date:July 2024 Abstract: Financial globalization has led to a large increase in international asset holdings. While the rise of associated dividend and interest flows has until now been muted by the decreasing trend in interest rates, this pattern could change, leading to a larger role of investment income flows in the[…]

Author(s):Mariassunta Giannetti, Jotikasthira Chotibhak, Andreas Rapp, Martin Waibel Date:July 2024 Abstract: We show that after the introduction of the leverage ratio constraints on bank-affiliated dealers, bond mutual funds have engaged in more liquidity provision in investment-grade corporate bonds and that the performance of funds with liquidity-supplying strategies has benefited. Not only have regulations transferred profits[…]

Author(s):Eugenio Cerutti, Stijn Claessens Date:July 2024 Abstract: We quantify the importance of the Global Financial Cycle (GFCy) in domestic credit and various local asset prices and compare it with that in capital flows. Using 2000-2021 data for 76 economies and a simple methodology, we find that each respective series’ common factor and conventional US GFCy-drivers[…]