Investment Restrictions and Contagion in Emerging Markets /

The objectives of this paper are: (1) to analyze an optimal portfolio rebalancing by a fund manager in response to a "volatility shock" in one of the asset markets, under sufficiently realistic assumptions about the fund manager's performance criteria and investment restrictions; and...

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التفاصيل البيبلوغرافية
المؤلف الرئيسي: Ilyina, Anna
التنسيق: دورية
اللغة:English
منشور في: Washington, D.C. : International Monetary Fund, 2005.
سلاسل:IMF Working Papers; Working Paper ; No. 2005/190
الوصول للمادة أونلاين:Full text available on IMF
الوصف
الملخص:The objectives of this paper are: (1) to analyze an optimal portfolio rebalancing by a fund manager in response to a "volatility shock" in one of the asset markets, under sufficiently realistic assumptions about the fund manager's performance criteria and investment restrictions; and (2) to analyze the sensitivity of the equilibrium price of an asset to shocks originating in other fundamentally unrelated asset markets for a given mix of common investors. The analysis confirms that certain combinations of investment restrictions (notably short-sale constraints and benchmark-based performance criteria) can create additional transmission mechanisms for propagating shocks across fundamentally unrelated asset markets. The paper also discusses potential implications of recent and on-going changes in the investor base for emerging market securities for the asset price volatility.
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وصف مادي:1 online resource (34 pages)
التنسيق:Mode of access: Internet
تدمد:1018-5941
وصول:Electronic access restricted to authorized BRAC University faculty, staff and students