Swing pricing can help ease liquidity pressure – BIS paper


Open-ended mutual funds may be able to mitigate some of the risk of investor runs by making use of swing pricing, a working paper published by the Bank for International Settlements finds.

Authors Ulf Lewrick and Jochen Schanz designed a model whereby investors can choose to invest directly in assets or buy shares in a fund. The market is populated by a large number of small funds, which commit to a pricing structure and then work to maximise utility for their investors.

The authors find swing

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: