Portfolio Dynamics and the Supply of Safe Securities

The author is grateful to Aydogan Alti, Daniel Neuhann, Clemens Sialm, Vasiliki Skreta, and Sheridan Titman for their guidance. The author thanks Lukas Schmid (editor), two anonymous referees, Andres Almazan, Philip Bond, Max Bruche, John Chu, William Fuchs, Sebastian Infante, Pab Jotikasthira, Jangwoo Lee, Robert Marquez, Max Miller, Martin Oehmke, Aaron Pancost, Alessio Piccolo, Alejandro Rivera, Dimitri Vayanos, Douglas Xu, and Hongda Zhong, as well as seminar and conference participants at Baruch College, BI Norwegian Business School, the Cheung Kong Graduate School of Business, the Chinese University of Hong Kong, the Chinese University of Hong Kong at Shenzhen, the Hong Kong University of Science and Technology, the London School of Economics, the Shanghai Advanced Institute of Finance, Southern Methodist University, the Southern University of Science and Technology, the University of Rochester, the University of Texas at Austin, the University of Washington, the 2021 Young Economist Symposium, the 2022 Econometric Society European Meetings, the 2022 European Finance Association Annual Meetings, the 2022 Northern Finance Association conference, the 2022 Financial Management Association Annual Meetings, the 2022 Qatar Centre for Global Banking and Finance Conference, the 2022 Financial Markets and Corporate Governance Conference, the 2023 Office of Financial Research Rising Scholars Conference, the 2023 Office of the Comptroller of the Currency Emerging Risk in Banking Symposium, the 2023 Econometric Society North American Meetings, and the 2024 Midwest Finance Association Annual Meetings for helpful comments. All errors are the author’s own.