Bloomberg on Money Fund Symposium
Bloomberg writes "Money-Market Fund Assets May Increase by 20% in 2019, Crane Says," which explains, "Money-market assets, which are already up about 13% in 2019 on a 52-week rolling average, will likely end the year up 20%, given that funds are seeing inflows at a time when balances typically fall, Peter Crane, president of Crane Data, said. Crane, speaking at the Crane's 2019 Money Fund Symposium in Boston, cited quarter-end and corporate quarterly tax payments as reasons why fund flows tend to be weak around this time of year. 'The craziest part of it is, it's not market-related,' because stock and bond markets are up, Crane said. 'This is all cash coming from new money or bank deposits.' 'I'm putting on a positive spin because this may be the peak before it all falls apart again,' Crane said." Bloomberg also wrote earlier yesterday, "Money Markets Are Thriving in an Uncharacteristic Sweet Spot." This article stated, "In a global financial environment dominated by negative interest rates and central banks signaling even more accommodative policies, the U.S. money-market industry is thriving. Normally seen as a place to park cash during times of uncertainty, taxable funds have seen roughly $136 billion of inflows this year even with U.S. equity markets surging and bonds posting positive returns, Investment Company Institute data show. Overall assets have swelled to more than $3 trillion, the highest level since the financial crisis.... While the specter of Fed rate cuts is not perceived as an imminent threat, it will be a topic among attendees at the Crane's Money Fund Symposium in Boston beginning Monday. Other issues likely to come up include the drop in yields and narrowing spread between government and prime money-market funds, as well as the post-reform growth of the market for repurchase agreements and popularity of sponsored repo." The piece quotes State Street Global Advisors' Pia McCusker, "Money fund yields are still above 2 percent, whether it's government or prime.... That's still attractive to investors today. If people are looking for a safe haven, cash is still a great place."
