Dörr, Sebastian; Eren, Egemen; Malamud, Semyon - 2023
US money market funds (MMFs) play an important role in short-term markets as large investors of Treasury bills (T …. We build a theoretical model in which MMFs’ strategic interactions generate a trade-off between their market power in the … repo market and their price impact in the T-bill market. Empirically, we show that MMFs’ portfolio allocation decisions …