Money Funds Have Most Withdrawals This Year Amid Debt Talks
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Investors last week pulled more money from money-market mutual funds than any week this year as U.S. lawmakers failed to resolve the impasse over raising the debt ceiling.
Withdrawals reached $37.5 billion, with about 70 percent of the redemptions coming from institutional funds that invest in U.S. government securities, according to data from the Investment Company Institute, a Washington-based trade group. Investors poured $3 billion into German stock funds in the week ended July 27, the most since mid-2008, and $1 billion into gold and precious-metals funds, according to EPFR Global, a Cambridge, Massachusetts-based research firm.