The Financial Times writes "Europe money market funds hit by heavy outflows". It says, "European money market funds have recorded their highest annual net outflows since 2010 as record low interest rates encouraged investors to put their cash into higher yielding assets such as bonds and equities. The funds, which control about E1tn in assets, saw net outflows nearly double last year to E69.2bn, the highest figure since E158.7bn was pulled out by investors in 2010, according to figures from Fitch, the rating agency.... The money market industry faces stiff challenges on the regulatory front, according to analysts. Under European regulators' proposals some funds could be forced to hold capital buffers equivalent to three per cent of assets. Critics say the regulation could all but wipe out returns, but regulators insist it will prevent a run on funds in future financial crises by giving investors more security."
