Kyle D. Allen

• PhD
• Assistant Professor of Finance at Louisiana Tech University

We examine whether impending government shutdowns affect money market fund (MMF) investors and managers. Research suggests that market participants place increased risk on US Treasury Bills around government shutdown periods. There are three sets of decision makers in our sample: retail MMF investors, institutional MMF investors, and MMF investment...

We examine how community banks respond to liquidity shocks created by natural disasters. We address community banks’ responses to liquidity shocks due to their focused geographic and economic presence, which coincide with their communities’ exposure to the disasters and the ability of the local banks to meet their needs. We find that community bank...

We analyze the Paycheck Protection Program (PPP) for small business lending of loans of $150,000 or less. Specifically, how did loans get funded during the critical first week of availability? We find that during the first week of available PPP loans, community banks issued nearly three times as many loans as large non-community banks, companies in...

Audits provide monitoring for investors. The collapse of markets across the financial crisis made assets more difficult to value, which increased risk for auditors. The money markets were at the center of the financial crisis increasing audit engagement risk on money market funds, which at the time of the crisis were highly opaque. Measuring the re...

From the inception of money market funds (MMFs), all MMFs reported a fixed $1 NAV (Net Asset Value). In July 2014, the Securities and Exchange Commission (SEC) issued new regulations for MMFs that require Prime institutional MMFs to report floating NAVs. The SEC did not expect a significant impact on the MMF industry from requiring floating NAVs fo...

A seldom discussed part of the 2010 Dodd–Frank Act (DFA) is how the deposit insurance assessment alteration impacted different types of banks. We provide details of the reform and investigate the effects on the banking industry. The DFA called for an expansion of the assessment base used to determine deposit insurance fees, along with a simultaneou...

One feature of the Dodd-Frank Act is the elimination of too-big-to-fail (TBTF) banks. TBTF is a government guarantee of large banks that has been shown to increase the value of these banks, so removing the guarantee should result in a price decline of TBTF bank stock. Using event study methods, we find very limited reaction to the process of elimin...

The Term Auction Facility (TAF) was designed by the Federal Reserve during the financial crisis to inject emergency short-term funds into banks, as a supplement to the lender of last resort discount window offerings. We describe how the Federal Reserve altered the design of the Term Auction Facility (TAF) over the course of the financial crisis and...

The TAF was designed to inject emergency short-term funds into all depository institutions, both large and small. We examine the evolution of the Federal Reserve’s design of the Term Auction Facility (TAF), and document and describe both community and non-community FDIC insured banks usage of the facility. Our research suggests that certain aspects...

Since December 18, 2008 when the Federal Reserve began paying 25 basis points (bps) on depository institution’s reserves, the effective federal funds rate has stayed well below 25 bps, on occasion by as much as fifteen bps. This suggests the possibility of an arbitrage opportunity. The purpose of this paper is to offer an explanation of this ongoin...

NAV is at the forefront of a policy debate; namely, whether or not money market funds should switch from a fixed $1 to a floating NAV. The supporters of floating NAV argue that this will provide investors with better information regarding the value of the fund’s underlying portfolio. However, this argument relies on up-to-date market transactions f...