“…Specifically, fragility has been documented for equity mutual funds(Chen, Goldstein, and Jiang, 2010), bond mutual funds(Goldstein, Jiang, and Ng, 2017;Chen and Qin, 2017), and money market funds(Kacperczyk and Schnabl, 2013;Schmidt, Timmermann, and Wermers 2016). Even hedge funds that have more discretion in dealing with investor redemptions can experience fragility(Agarwal, Aragon, and Shi, 2019;Aragon, Nanda, and Zhao, 2020).4 Funds can manage liquidity with cash holdings(Chernenko and Sunderam, 2016;Zeng, 2017), interfund lending, financial conglomerate affiliation(Franzoni and Giannetti, 2019), and swing pricing(Lewrick and Schanz, 2017;Jin et al, 2020).Electronic copy available at: https://ssrn.com/abstract=3527846…”