Dow Jones writes in "Institutional Money Funds See Big Flows", "With problems in the credit markets spooking corporate treasurers, many are rediscovering a sturdy investment long popular on Main Street: the money-market fund."
It quotes Bob Deutsch head of global liquidity at JPMorgan Chase & Co. (JPM), "What they are doing is pulling cash out of those investments they perceive as risky and moving it to those they see as good. They are willing to give up yield." The article also mentioned recent growth and money funds' advantage during periods of falling rates.
It quotes Simon Mendelson, chief operating officer of BlackRock Inc.'s (BLK) Global Cash Management Group, "As the Fed lowers rates, money-market funds look favorable (relative) to direct investments. Money-market yields fall more slowly than those on individual securities."
