Investing
Investors Seen Pouring $1.5 Trillion More Into the Safest Money Funds, Barclays Says
- More cash set to move into government-only money-market funds
- Search for safety and better rates are key to continuing trend
Photographer: Luke Sharrett/Bloomberg
This article is for subscribers only.
The wave of cash plowing into the safest of money-market mutual funds has only just begun with as much as another $1.5 trillion set to enter over the next year, according to Barclays Plc.
Coffers of government-only money funds, which invest just in securities with virtually no credit risk such as Treasury bills and repurchase agreements, have already ballooned since fears of a banking-sector crisis erupted last month. A continued exodus from banks and rotation out of prime funds, which can buy more risky debt, will only further fuel that trend as investors search for higher yields and greater safety, Barclays says.