| US money market funds build liquidity |
| US money market funds are stockpiling cash in case Congress fails to raise the debt ceiling, distorting the short-term market for US government debt and raising borrowing costs for banks and other financial institutions. While the funds will continue to hold US Treasuries in the event of a downgrade or default, they are building up liquidity and shunning certain securities due to fears that a failure to raise the debt ceiling could trigger client redemptions. http://link.ft.com/r/4RNQTT/ |
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Tuesday, July 26, 2011
US money market funds build liquidity
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Posts like this illustrate how major current events and and personal finances are so related. Money market funds are stocking up on cash in case bonds and more volatile begin to fluctuate.
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