Refine
Year of publication
Document Type
- Working Paper (62)
- Part of Periodical (12)
- Article (6)
- Report (1)
Has Fulltext
- yes (81) (remove)
Is part of the Bibliography
- no (81)
Keywords
- financial stability (6)
- coronavirus (5)
- OTC markets (4)
- Central Clearing (3)
- Coronavirus (3)
- Corporate Bonds (3)
- Corporate Social Responsibility (3)
- Counterparty Risk (3)
- Covid-19 (3)
- Credit Risk (3)
We study the role mutual funds play in the recovery from fast intraday crashes based on data from the National Stock Exchange of India for a single large stock. During normal times, trading activity and liquidity provision by mutual funds is negligible compared to other traders at around 4% of overall activity. Nevertheless, for the two intraday market-wide crashes in our sample, price recovery took place only after mutual funds moved in. Market stability may require the presence of well-capitalized standby liquidity providers for recovery from fast crashes.