Investing
The Rush Into Money Funds Is Slowing, But They’re Still Growing
- Balances rose by $30.3 billion in week through April 12: ICI
- Smaller increase suggests banking sector is stabilizing
Photographer: Andrew Harrer/Bloomberg
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The amount of money parked at money-market funds climbed to a fresh record in the past week, though the pace of inflows slowed for a second straight week, an indication that the banking sector is stabilizing.
Money-market funds have been scooping up cash in recent months, fueled in large part by depositors pulling their money away from US banks. Much of that flow was driven by more attractive rates, but concern about the steadiness of some smaller lenders helped turbocharge that move last month.