Arbeitspapier
Once a trader, always a trader: The role of traders in fund management
Mutual fund families are increasingly assigning traders to manage corporate bond mutual funds. Using this setting to study the role of traders in investment management, we document that trader managers identify and exploit short-term trading opportunities at lower transaction costs. These skills are particularly valuable during periods of market stress. Moreover, trader managers exhibit sophisticated risk management behavior: They reduce credit risk during periods of market stress and take more maturity risk during periods of large interest rate fluctuations, while holding portfolios with greater convexity. The combination of these skills produces relative outperformance during periods of large interest rate fluctuations.
- Language
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Englisch
- Bibliographic citation
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Series: CFR Working Paper ; No. 24-01
- Classification
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Wirtschaft
Portfolio Choice; Investment Decisions
Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
Human Capital; Skills; Occupational Choice; Labor Productivity
- Subject
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traders
fund managers
transaction costs
corporate bonds
- Event
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Geistige Schöpfung
- (who)
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Cici, Gjergji
Schuster, Philipp
Weishaupt, Franziska
- Event
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Veröffentlichung
- (who)
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University of Cologne, Centre for Financial Research (CFR)
- (where)
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Cologne
- (when)
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2024
- Handle
- Last update
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10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Cici, Gjergji
- Schuster, Philipp
- Weishaupt, Franziska
- University of Cologne, Centre for Financial Research (CFR)
Time of origin
- 2024