- 25 November 2020
- FINANCIAL STABILITY REVIEW - BOXInterconnectedness of derivatives markets and money market funds through insurance corporations and pension fundsFinancial Stability Review Issue 2, 2020Details
- In the most turbulent week during the coronavirus-related market turmoil in March 2020, euro-denominated money market funds experienced very high outflows. But which investors withdrew from these funds and why did they do so? This box suggests that the increase in variation margin on derivatives contracts held by euro area insurance corporations and pension funds was one of the key drivers behind these outflows.
- JEL Code
- G01 : Financial Economics→General→Financial Crises
G22 : Financial Economics→Financial Institutions and Services→Insurance, Insurance Companies, Actuarial Studies
G23 : Financial Economics→Financial Institutions and Services→Non-bank Financial Institutions, Financial Instruments, Institutional Investors
G15 : Financial Economics→General Financial Markets→International Financial Markets