"Money Funds Still Hot in '08" to Grow 20 Percent Says Financial Week. The weekly Crain Communications publication article is subtitled, "Corporate cash should help boost assets 20% this year, after 31% surge in 2007". It says, "Despite reports that some money market mutual funds got entangled in the credit crunch of 2007, it was a very good year for such investments overall." The piece cites recent Crane Data estimates, saying, "Another year of phenomenal growth is in store for 2008, according to money fund guru Peter G. Crane.... Managers of money-market funds could see assets grow by 20% this year, to roughly $3.8 trillion, the founder of money fund research firm Crane Data said last week. And he expects increases of up to 15% in 2009, which would put assets above $4 trillion." The article also quotes Treasury Strategies Mike Gallanis on money funds' "lag effect" and The Reserve's Bruce Bent on "institutional investors that were abandoning direct investments in securities in favor of money-market funds". Crane Data projects that money market mutual fund assets will increase to $3.750 trillion in 2008 and to $4.313 trillion in 2009.

Email This Article




Use a comma or a semicolon to separate

captcha image