Wells Fargo writes "​Low rates have us down" in its latest "​Portfolio Manager Commentary. Dave Sylvester says, "The tone in the money markets turned increasingly negative in September. This might have as much to do with the quality and volume of information as its content. This month, we explore possible causes for the continuing negative sentiment and discuss some recent activity by the rating agencies. We also look at the underlying trend in credit quality and some factors to consider when evaluating credit quality.... The ultra-​low rates are wearing market participants down, as some question whether or not they are getting paid enough for the admittedly minor credit and settlement risks involved in money market transactions. The attention given to the possibility that the Federal Reserve (​Fed) might cut the interest paid to banks on their excess reserves reflects the anxiety in the markets, as investors face the possibility of another couple of years of a near zero interest rate policy. The idea of the central bank forcing rates from zero to negative was like adding insult to injury. Money market participants had to wonder if the Fed really believed there were hordes of potential borrowers just waiting in the wings, if only rates would drop a few more basis points!"

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