In our turbulent situations, money-market funds have returned from the lifeless, along with a number of liquid, brief-phrase, in close proximity to-hard cash options. As of Nov. 2, cash funds were being yielding an normal 2.9%, and that is probable to maintain increasing as the Federal Reserve carries on to raise interest prices.
Their real level of competition, in financial investment benefit, security, and liquidity, is not bank accounts, but somewhat ultrashort-phrase bond exchange-traded funds. The most significant, the $25 billion
SPDR Bloomberg 1-3 Month T-Monthly bill
invests in the most secure Treasury payments. But that ETF pays a somewhat decrease SEC or official “standardized” yield, 2.7%, than numerous retail cash cash now. With the substantial demand for T-expenses this yr, they now produce .25 to .30 proportion points under some of the right away repos that cash cash will commit in.
In our turbulent situations, money-market funds have returned from the lifeless, along with a number of liquid, brief-phrase, in close proximity to-hard cash options. As of Nov. 2, cash funds were being yielding an normal 2.9%, and that is probable to maintain increasing as the Federal Reserve carries on to raise interest prices.
Their real level of competition, in financial investment benefit, security, and liquidity, is not bank accounts, but somewhat ultrashort-phrase bond exchange-traded funds. The most significant, the $25 billion
SPDR Bloomberg 1-3 Month T-Monthly bill
invests in the most secure Treasury payments. But that ETF pays a somewhat decrease SEC or official “standardized” yield, 2.7%, than numerous retail cash cash now. With the substantial demand for T-expenses this yr, they now produce .25 to .30 proportion points under some of the right away repos that cash cash will commit in.
