Mutual Fund Fragility, Dealer Liquidity Provision, and the Pricing of Municipal Bonds

The views expressed herein are those of the authors and do not necessarily reflect those of the Federal Reserve Board or its staff. The authors thank Bill Huffman for valuable advice on the workings of the municipal bond market; Keely Adjorlolo and Claire Neushul for excellent research assistance; and Jack Bao, Burton Hollifield, Edith Hotchkiss, Mahyar Kargar, Sophia Zhengzi Li, David Ng, Or Shachar, Qifei Zhu, and seminar and conference participants at Boston College, Federal Reserve Board, Federal Reserve Bank of Cleveland, Office of Financial Research, Norges Bank, Nanyang Technological University, University of Delaware, University of Texas at Dallas, Southern Methodist University, Virtual Municipal Finance Workshop Spring 2021, Conference on Financial Market Regulation, 2021 Western Finance Association Conference, 2021 China International Conference in Finance, the 10th Municipal Finance Conference at Brookings, and 2021 China International Forum on Finance and Policy for helpful comments.