While the global financial system waits for the Federal Reserve to begin lifting interest rates, funds across the money-market industry are positioning their cash to take advantage of the higher yields to come.
For some funds that means shortening exposure to interest-rate shifts in their portfolios. As of Feb. 14, more than 100 money markets funds had a weighted average maturity, or WAM, of 10 days or less, including some Federated Hermes funds at 1 day, according to money-market information provider Crane data. That’s up from 85 funds on Jan. 24 and 77 at the end of December.
