Is the asset management sector a source of financial instability? This paper contributes to the debate by performing a macroprudential stress test in order to quantify systemic risks in the mutual fund sector. For this purpose we include the welldocumented flow-performance relationship as an...

A growing literature explores structural fund sector vulnerabilities in the form of fire sale externalities. In this paper, we uncover a previously neglected, yet very important source of fund sector vulnerabilities that arises because funds increasingly invest in other funds. Such fund...

Investment funds are highly connected with each other, but also with the broader financial system. In this paper, we quantify potential vulnerabilities arising from funds' connectedness. While previous work exclusively focused on indirect connections (overlapping asset portfolios) between...