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Systemic risk of UCITS investment funds and financial market stability tested using MRS model

Jakša Krišto orcid id orcid.org/0000-0003-1381-2078 ; Ekonomski fakultet - Zagreb
Alen Stojanović orcid id orcid.org/0000-0002-8769-3668 ; Ekonomski fakultet - Zagreb
Hrvoje Filipović orcid id orcid.org/0000-0002-7165-3389 ; European Actuarial Services, Ernst & Young Financial-Business Advisors SpA


Puni tekst: engleski pdf 574 Kb

str. 1-15

preuzimanja: 622

citiraj


Sažetak

Systemic risk came into attention in the period of recent financial crisis. Importance of financial intermediation of investment funds is posing to a systemic influence of this sector to a stability of a financial market and therefore whole financial sector. This was proven through investment behavior, fire sales and net outflows from investment funds during the financial crisis. The article is testing systemic risk of whole range of different UCITS investment funds and behavior of these institutions as well as influence on financial market stability. Methodology is based on Markov regime switching model. A conclusion in this article proves existence of systemic risk in returns of analyzed UCITS investment funds and their strong systemic interconnections with returns and volatility on a financial market. Different investment strategy and type of UCITS investment fund shows no resistance to systemic risk according to this research.

Ključne riječi

systemic risk; UCITS investment funds; financial stability; interconnectedness; Markov regime switching model

Hrčak ID:

147214

URI

https://hrcak.srce.hr/147214

Datum izdavanja:

20.10.2015.

Posjeta: 1.481 *