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☆ Money market funds hit another record high — but experts warn it's time to move out of cash. Where they see opportunity
▼ + stars: | 2024-09-09 | by ( Michelle Fox | ) www.cnbc.com time to read: +5 min

Assets in money market funds hit $6.3 trillion the week that ended Wednesday, another record high, according to the Investment Company Institute . The annualized 7-day yield on the Crane 100 list of the 100 largest taxable money funds is currently 5.08%. History shows that when investors do move out of money market funds, they move into fixed income over equities, he said. Institutional investors will also continue to move into money market funds as the Fed cuts rates because any cash they have in direct money market investments, such as Treasury bills, will be hit by rate cuts quicker than money market funds, explained Peter Crane, founder of Crane Data, a firm that tracks the industry. Once you have the appropriate cash needs set aside, consider moving any excess funds into fixed income, Jenkin said.

Persons: Mark Cabana, Peter Crane, Crane, Ted Jenkin, Jenkin, Leslie Falconio, Fannie Mae, Freddie Mac, Ginnie Mae, Falconio Organizations: Investment Company Institute, Bank of America, Federal Reserve, Institutional, Crane, CNBC, American Express, Bread Financial, UBS, U.S . Locations: UBS Americas

☆ With interest rates expected to be higher for longer, here's what to do with your cash
▼ + stars: | 2024-04-12 | by ( Michelle Fox | ) www.cnbc.com time to read: +5 min

That means those saving cash in money market funds and Treasury bills can expect to see their rates stay higher for longer. The annualized seven-day yield on the Crane 100 list of the 100 largest taxable money funds is currently 5.13%. The appetite for money market funds is evident in the record amount of cash pouring into the products. Last week, there was $6.11 trillion sitting in money market funds, according to the Investment Company Institute , up from $5.87 trillion in mid-December. Then there are moderate risk investors with longer time horizons, which Vanguard surveys show are the majority of investors, he said.

Persons: They've, Peter Crane, Shelly Antoniewicz, Marguerita Cheng, you'll, Cheng, Roth, Barry Glassman, Glassman, he's, Roger Aliaga, Diaz, Vanguard's, Cash, Aliaga Organizations: Federal, Crane, Investment Company Institute, Blue, Global, CNBC, Wealth, Treasury, Vanguard

☆ Money market funds saw record inflows even as stocks continued their climb to fresh highs
▼ + stars: | 2024-03-04 | by ( Michelle Fox | ) www.cnbc.com time to read: +2 min

Total assets in money market funds have hit a new record high, according to the latest data from the Investment Company Institute. The funds, which still have yields above 5%, saw total assets hit $6.06 trillion for the week ended Feb. 28, the firm said . While some on Wall Street think some of the cash in money markets will move into stocks, Crane has said there is no correlation between the two. Instead, money markets are competing with bank deposits, he believes. The annualized seven-day yield on the Crane 100 list of the 100 largest taxable money funds is currently 5.14%.

Persons: Peter Crane, January's, Moody's, Crane, Teresa Ho Organizations: Investment Company Institute, New York Community Bancorp, Crane, New, New York Community, Fitch, JPMorgan, CNBC Locations: New, New York

☆ Even as yields come off their highs, investors continue pouring into cash, Bank of America finds
▼ + stars: | 2024-01-17 | by ( Michelle Fox | ) www.cnbc.com time to read: +3 min

Investors are continuing to pour cash into money market funds, thanks to their juicy 5% yields. In the month of January, money market funds typically see outflows after having big inflows in December, she said. That's because there is generally a lag between the cuts and money market fund yields coming down. Still, even as yields in money market funds eventually go down, they will still be attractive, said Peter Crane, founder of Crane Data. Typically, retail investors have an allocation of about 5% or 10% in cash, including money market funds.

Persons: Deborah Cunningham, Cunningham, Peter Crane Organizations: Bank of America, Federated Hermes, Crane Data, Investment Company Institute

☆ Money market funds were hot in 2023. Here's what to expect in 2024
▼ + stars: | 2023-12-26 | by ( Michelle Fox | ) www.cnbc.com time to read: +5 min

Next year should be another good one for money market funds, even amid anticipated rate cuts by the Federal Reserve, experts predict. An estimated $950 billion has gone into money market funds so far this year, bringing the total net assets to $5.87 trillion as of Dec. 20, according to the Investment Company Institute . The Federal Reserve has indicated three rate cuts for 2024, which means the yields in short-term assets like money market funds and online savings accounts will follow suit. That's because money market funds are competing with bank savings accounts for cash, not necessarily equities and fixed income assets, he said. Certified financial planner Cathy Curtis, founder and CEO of Curtis Financial Planning, would look at money market funds for cash you will need in six months or less.

Persons: Shelly Antoniewicz, Peter Crane, Crane, it's, Christine Benz, Cathy Curtis, Curtis, Kristy Akullian Organizations: Federal Reserve, Crane Data, Investment Company Institute, Federal, Crane, Morningstar, Benz, Curtis Financial, CNBC, BlackRock

☆ Money market funds are yielding north of 5%. Here's when it may pay to look elsewhere
▼ + stars: | 2023-11-08 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

Investors can't get enough of money market funds these days due to their attractive yields, which are north of 5%. When money market funds work Those who need easy access to cash could benefit from the money market funds' liquidity, which is one of the asset's biggest advantages, Benz said. However, unlike bank savings accounts, money market funds are not insured by the Federal Deposit Insurance Corporation. While money market funds may be yielding more than longer-term Treasurys or investment-grade bonds right now, that isn't necessarily always going to be the case. "Why would someone invest in a 5-year Treasury note when a money market fund is yielding higher?

Persons: Christine Benz, hasn't, Charles Schwab, Hermes, Peter Crane, Benz, Barry Glassman, Glassman, laddering, —, Jesse Pound Organizations: Morningstar, Crane Data, Fidelity, Data, Vanguard, Wealth, Federal Deposit Insurance Corporation, Benz, CNBC

☆ These money market funds have yields that top 5%
▼ + stars: | 2023-10-11 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

With yields at around 5%, money market funds have been attracting investors in droves — yet not all funds are the same. Right now, prime funds yield an average 5.18%, while the average government fund's yield is 4.98%, per iMoneyNet. The weighted average maturity of retail prime money market funds is around 32 days, said Shelly Antoniewicz, deputy chief economist at the Investment Company Institute. Correction: A table in an earlier version of this report incorrectly described the listed funds as government money market funds. They are prime money market funds.

Persons: Dave Lafferty, Deborah Cunningham, Shelly Antoniewicz, Hermes, Cunningham, Crane, Peter Crane Organizations: Crane Data, Schwab Asset Management, Federated Hermes, Investment Company Institute . Retail, Federal Reserve, ICI, Government, Fed

☆ Investors can get a 5% yield in these assets and skip the bond market volatility
▼ + stars: | 2023-10-06 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

Investing in money market funds The interest in money market funds began to heat up when the Federal Reserve started raising interest rates last year, Antoniewicz said. Some $64.13 billion flowed into money market funds the week ended Wednesday, bringing total net assets to a record $5.71 trillion, per the Investment Company Institute . Net assets also hit a record within retail money market funds, reaching $2.16 billion, the ICI said. The annualized 7-day yield yield on the Crane 100 list of the 100 largest taxable money funds is currently 5.18%. "So if you have stability in a money market fund and an equal or higher yield, why would anyone consider leaving a money market fund to go longer term and have the volatility?"

Persons: Peter Crane, Jean Boivin, Shelly Antoniewicz, Antoniewicz, Barry Glassman, Glassman, I'm Organizations: Crane, Treasury, Federal Reserve, BlackRock Investment Institute, Investment Company Institute, ICI, Data, Wealth Services

☆ Record inflows are expected this year in money market funds. Here are the top yielding plays
▼ + stars: | 2023-09-25 | by ( Michelle Fox | ) www.cnbc.com time to read: +2 min

Americans continue to flock to money market funds, attracted by yields the assets haven't seen in years. In fact, retail investors in money market funds have grown 40% over the past year, said Peter Crane, founder of Crane Data, a firm that tracks money markets. They also account for almost 40% of the whole money fund pie, up from 33% a year ago, he said. "They will keep hitting records, there is no doubt of that," Crane said of money market fund inflows. Here are the top yielding government money market funds, per Crane Data, as of July 31, the latest data available.

Persons: Shelly Antoniewicz, Antoniewicz, Peter Crane, Crane, givens Organizations: Bank of America, Investment Company Institute, Assets, ICI, Crane

☆ Savers should be cheering higher interest rates. So why are they unhappy?
▼ + stars: | 2023-07-06 | by ( Anna Cooban | ) edition.cnn.com time to read: +6 min

London CNN —When central banks raise interest rates, mortgage borrowers can expect higher monthly repayments, while savers are supposed to be rewarded with bigger returns on their deposits. In Asia, the picture is less uniform: China cut its benchmark lending rate last month, adding to recent reductions in other interest rates, and Japan has kept its main interest rate negative in a bid to stimulate demand. However, rates on savings accounts there are closer to the central bank’s main rate than in other major economies. “While interest rates were ultra-low, the mortgage market was incredibly competitive, so [banks] were operating on unusually small margins between savings rates and mortgage deals… so they’re busy filling their boots,” she said. The top 100 US money market funds tracked by Crane Data are offering an average annual interest rate of 4.94%.

Persons: Nathan Howard, Jeremy Hunt, Sarah Coles, Hargreaves Lansdown, ”, Christopher Furlong, Crane, Peter Crane, they’ve Organizations: London CNN, Federal Deposit Insurance Corporation, US Federal Reserve, Bloomberg, Getty, European Central Bank, of, CNN, Getty Images Bank, Finance, Bank of England’s, HSBC, Barclays, Crane Data, Bank of England, “ Locations: Europe, United States, United Kingdom, Asia, China, Japan, South Korea

☆ Markets brace for deluge of Treasury bill supply after US debt deal
▼ + stars: | 2023-06-05 | by ( ) www.reuters.com time to read: +3 min

The Treasury General Account has fallen sharply since January when Treasury hit its limit on borrowing. Cash balance targets indicate it will need to rebuild its account quickly now that the borrowing cap has been lifted. "Money market funds are extremely short ... so the trillion-dollar Treasury bills (issuance) would be welcome with open arms," said money market fund expert Peter Crane, president of Crane Data. Part of that could be due to the fact that money funds, heavily exposed to short-term debt this year, have started to extend the their maturities recently. "The Federal Reserve RRP has been holding trillions of the money fund assets and so that money can easily be redeployed into Treasury bills.

Persons: Steven Zeng, Zeng, Glenmede, Peter Crane, RRP, Bank's Zeng, Davide Barbuscia, Karen Brettel, Alden Bentley, Matthew Lewis Organizations: YORK, Treasury, Deutsche Bank, Treasuries, Crane, Federal, Thomson Locations: New York

"The risk of a downgrade is exacerbated every time Congress flirts with the debt ceiling," said Calvin Norris, Portfolio Manager & US Rates Strategist at Aegon Asset Management, who sees another downgrade as still a risk. Economic damage from the 2011 and 2013 debt ceiling battles had a chilling impact. Rating agency Fitch and other smaller agencies recently placed the U.S. credit rating under review. Reuters GraphicsCASCADE EFFECTInvestors use credit ratings as one of the metrics to assess the risk profiles of governments and companies. In the 2013 debt ceiling crisis the legislative standoff did not cause a rating downgrade, although Fitch placed its rating under review.

Persons: Kevin McCarthy, Joe Biden, Leah Millis, Calvin Norris, Wendy Edelberg, Edelberg, Fitch, William Foster, ”, Andy Sparks, Olivier d'Assier, Peter Crane, MSCI's Sparks, Davide Barbuscia, Megan Davies, Nick Zieminski Organizations: U.S, White, REUTERS, Senate, Republicans, Aegon Asset Management, AAA, Government, Office, The, Brookings Institution, Moody's, Moody’s Investors Service, Applied Research, Crane, Treasury, Thomson Locations: Washington , U.S, U.S, United States, Washington, APAC, Qontigo

☆ Explainer: How are money market funds preparing for a potential debt ceiling crisis?
▼ + stars: | 2023-04-06 | by ( John Mccrank | ) www.reuters.com time to read: +5 min

HOW BIG ARE MONEY MARKET FUNDS? Assets under management in U.S. money market funds, which include Treasury-only funds, prime funds, and government funds, totaled a record $5.2 trillion as of March 29, Investment Company Institute data showed. WHY IS THE DEBT CEILING A CONCERN FOR MONEY MARKET FUNDS? Fitch Ratings warned in February that the potential for investor redemptions and volatility in Treasury-only money market funds – as opposed to prime and government money market funds, which have other sources of funding – would rise if investors believed the government were to default. Runs on money market funds have been rare.

☆ High yields have investors piling into money market funds. Here's what you need to know
▼ + stars: | 2023-01-25 | by ( Michelle Fox | ) www.cnbc.com time to read: +7 min

High yields and a volatile stock market have investors piling into money market mutual funds. Yet for retail funds, inflows are still climbing — the week ended Jan. 18 saw a $4.97 billion increase into retail money market funds, to bring net assets to a total of $1.74 trillion. One thing to keep in mind is that a money market fund is not FDIC-insured, while a money market account at a bank is insured. "If your money market fund yield is lagging, you probably have a high expense money fund." The net asset value of money market funds is normally maintained at $1 share.

☆ Retail money market funds inflows are the highest in 30 years as investors seek safety. Best funds to buy
▼ + stars: | 2022-10-26 | by ( Carmen Reinicke | ) www.cnbc.com time to read: +5 min

One fixture of overall money market funds is seeing the highest growth in decades this year – retail money market fund inflows hit $122.1 billion in the week ending Oct. 19, the most since 1992, according to data from Refinitiv Lipper. Overall, the market is seeing outflows driven by institutional investors, with $189.5 billion being withdrawn from U.S. money market funds through Oct. 19. Money market mutual funds offer investors safety, making them a solid place to park cash. He added that investors should also note that not all money market mutual funds are insured by the FDIC, unlike checking and savings accounts or money market deposit accounts. In the quarter ending Sept. 30, Charles Schwab reported $132 million in revenue from money market funds.

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