Investing
Money-Market Funds Are Hot Again After Years of Fee Discounts
- Yields are back after a ‘lost decade’ of low interest rates
- Money-market funds revenues hit a record in March of this year
This article is for subscribers only.
Money-market funds — those humdrum cash-equivalents that plodded along for years in the low-interest rate era – have suddenly turned lucrative.
The funds are throwing off reams of cash, buoyed by a flight to safety following the regional banking crisis, the US Federal Reserve’s rate hikes and increased fees. About $369 billion net has flowed into money-funds since mid-March, and at the same time, money market funds stopped having to discount their fees to retain business.