Bond Managers Seek to Win Back Clients Sitting on $6 Trillion in Funds
- Active funds covet the cash sitting in money-market funds
- ‘We are in a winner-takes-a lot moment’ after three-year rout
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As the worst three-year rout on record starts fading from view, some of the biggest managers of bond funds still have a daunting task: winning back clients who fled with hundreds of billions of dollars.
Record sums — now nearly $6 trillion — are sitting in money-market funds held by investors who sought refuge from falling bond prices and this year’s turmoil at US banks. With rate cuts looking more likely next year, a bond market rally that began last month has become supercharged, and some of that cash theoretically should be headed to funds run by the brightest managers.