## Liquidity Stress Tests for Investment Funds: A Practical Guide

_IMF Working Papers, October 31, 2017_

## Source details

**Canonical URL:** [Liquidity Stress Tests for Investment Funds: A Practical Guide](https://www.imf.org/en/publications/wp/issues/2017/10/31/liquidity-stress-tests-for-investment-funds-a-practical-guide-45332)

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## Bibliographic details
- Authors: Antoine Bouveret
- Published: October 31, 2017
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484324783.001

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### Overview and purpose
- Paper outlines a framework to perform liquidity stress tests for investment funds.
- Practical aspects discussed include:
  - calibration of the redemption shock,
  - measurement of liquidity buffers,
  - assessment of the resilience of investment funds.
- Integration topics covered:
  - integration of liquidity stress tests with banking sector stress tests,
  - possible bank-fund interlinkages.

### Subjects and thematic scope
- Subjects:
  - Banking
  - Bonds
  - Financial institutions
  - Financial regulation and supervision
  - Financial sector policy and analysis
  - Liquidity requirements
  - Liquidity stress testing
  - Mutual funds
  - Securities
- Keywords (as provided):
  - bank-fund interlinkage
  - Bonds
  - Europe
  - fund
  - fund manager
  - HY fund
  - investment funds
  - liquidity
  - liquidity buffer
  - Liquidity requirements
  - Liquidity stress testing
  - Mutual funds
  - redemption
  - redemption shock
  - Securities
  - stress test
  - WP

### Main analytical components (as presented)
- Framework elements for liquidity stress testing:
  - calibration of redemption shock (methodological discussion).
  - measurement of liquidity buffers (practical measurement considerations).
  - assessment of fund resilience (assessment approaches).
- Cross-sector considerations:
  - integration with banking sector stress tests.
  - analysis of possible bank-fund interlinkages.

### Usage and caveat
- IMF Working Papers describe research in progress and are published to elicit comments and to encourage debate.
- Views expressed are those of the author and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

*Source: IMF Working Paper — Antoine Bouveret, "Liquidity Stress Tests for Investment Funds: A Practical Guide", Working Paper No. 2017/226, October 31, 2017.*

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## Content in this bundle

- **Liquidity Stress Tests for Investment Funds: A Practical Guide, WP/17/226, October 2017**
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_Source: https://www.imf.org/en/publications/wp/issues/2017/10/31/liquidity-stress-tests-for-investment-funds-a-practical-guide-45332_