U.S. Money-Market Investors Face Multiple Grim Trends in 2021
- A supply-demand imbalance is likely to keep yields low
- Fed-spawned cash glut meets shrinking supply of safe assets
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Investors in the U.S. money market are facing a grim year ahead.
That’s the vision laid out by JPMorgan Chase & Co. strategists, who predict that the supply of investable assets will shrink by about $300 billion while the amount of cash chasing them has nearly doubled to $3 trillion.