We identify fixed-income mutual funds as an important contributor to the unusually high selling pressure in liquid asset markets during the Covid-19 crisis. We show that mutual fund liquidity transformation led to pronounced investor outflows. In meeting redemptions, funds followed a pecking...

In this paper, we propose and construct a direct measure of investors' divergence of opinionbased on auction bids data of the private placements in China. We find that the firms withhigher bids dispersion generate lower long-run stock returns after the issuance of privateplacements. This effect...