Plausibly Exogenous [1597] - Fire Sales (06/17/2024)

LHS Variable
Peer funds’ performance and flows

RHS Variable
Fire sales induced by investor redemptions

Source of Exogenous Variation
Sharp changes in fund flows around the (un)assignment of Morningstar five-star ratings

- Falato, Hortacsu, Li, and Shin (2021), “Fire‐sale spillovers in debt markets”