According to Financial Times data, the banking crisis has caused many investors to rotate their portfolios over the past two weeks, depositing more than $286 billion in U.S. money market funds through March. .
According to the figures, the biggest beneficiaries of investors pouring money into US money market funds over the past two weeks have been Goldman Sachs, JPMorgan Chase and Fidelity. The FT said Goldman Sachs funds received $52 billion, up 13%, while JPMorgan's funds were poured in nearly $46 billion and Fidelity received nearly $37 billion. Marking the milestone of cash inflow volume is the largest in a month since the outbreak of the Covid-19 epidemic.
Money market funds typically offer high Liquidity and low risk, making them a popular choice for investors in uncertain times. Currently, these funds are providing the best yields in years as the US Federal Reserve continues to raise interest rates to curb inflation.
In the seven days to March 22, total money market fund assets increased by $117.42 billion to $5.13 trillion, according to a report from the Investment Company Institute. Among taxable money market funds, government funds increased by $131.84 billion and primary funds decreased by $10.83 billion. Tax-exempt money market funds fell by $3.61 billion.
Money market inflows boosted by concerns around the health of the financial system as banks in the US and Europe face Liquidity crackdown amid tightening policy currency.
On March 24, shares of Deutsche Bank fell as the cost of insurance increased against its potential default. The German bank's five-year credit default swap, known as CDS, was up 19 basis points (bps) from the previous day to close at 222 bps, according to Reuters, citing data from Reuters. S&P Global Market Intelligence.
In the United States, uncertainty still shrouds regional banks as default insurance for financial services firms Charles Schwab and Capital One spiked last week, the latest of which saw NPL swaps spiked more than 80% to 103 bps since March 20.
BREAKING: Credit Default Swaps (CDS), insurance on default on Charles Schwab EXPLODE 😱🚨 pic.twitter.com/KJdNTq2xMm
— Bitcoin News (@BitcoinNewsCom) March 24, 2023
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