![]() ![]() ![]() "The investor reaction would seem to suggest that investors have got more faith in European banks right now than they do in the U.S," said Michael Metcalfe, head of macro strategy at State Street Global Markets.Įuropean banks are also passing on interest rate rises more effectively, encouraging customers to keep their money locked up, JPMorgan strategist Nikolaos Panigirtzoglou said. commercial banks in the week to March 15, as Silicon Valley Bank and Signature Bank both collapsed. Households and businesses pulled a record $174.5 billion from U.S. MMFs in March were driven in large part by companies and investors yanking their money out of banks, analysts have said. ![]() Of that, around 40% are euro-denominated funds. Įuropean-domiciled MMFs - including sterling and dollar funds - have grown from 1 trillion euros in assets in 2014 to around 1.5 trillion euros, based on data from the European Fund and Asset Management Association (EFAMA). MMF assets surged to $5.2 trillion in March from $2.5 trillion in 2014. ![]() The European money market fund sector is far smaller than in the United States. Companies and investors see them as safe places to park cash. WHAT IS A MONEY MARKET FUND?Ī money market fund (MMF) is a mutual fund that invests in highly liquid - that is, easy to buy and sell - short-term debt products, such as those issued by governments or highly rated companies. funds and are focused more on private sector, particularly bank, debt. Other analysts said it was due to the fact that euro money market funds are underdeveloped relative to U.S. The lower level of inflows suggests investors remained confident about Europe's banks in general despite the collapse of Credit Suisse, some analysts said. But the inflows in Europe pale in comparison to the torrent that swept into U.S. That was a big jump from the previous three months, and the biggest inflow since November in the aftermath of the UK's disastrous budget. In Europe, investors put 17.7 billion euros ($19.35 billion) into euro-denominated money market funds in March, Refinitiv Lipper data shows, when the Credit Suisse crisis rocked markets. money market funds in March, according to data provider EPFR, as the collapse of Silicon Valley Bank caused stocks to tumble and called the safety of bank deposits into question. LONDON, April 11 (Reuters) - Investors poured $367 billion into U.S. ![]()
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