Money market Financial News

Investors redeemed £32.5bn from all asset classes in 2023, surpassing 2019 for the largest outflow in absolute terms.

The Fed has been running QT for a while and yet there is still abundant liquidity in the financial system.

Last year, a record £4.4bn was paid into money market funds, as high interest rates and low risk proved incredibly attractive to investors.

(Reuters) — Investors moved hefty amounts into global money market funds in the seven days leading to Jan. 3 as caution set in ahead of key U.S. employment reports which may influence expectations of Federal Reserve rate cuts.

In the consultation, the FCA said it would be significantly increasing the minimum proportion of highly liquid assets that MMFs have to hold.

Money market fund managers see no end in sight to the record inflows they have garnered in 2023, as cash continues to pour in from investors hoping to take advantage of the highest yields available in years.

Bank of India (RBI) introduced an incremental cash reserve ratio (ICRR). About ₹1.1 trillion withdrawn through it turned the market around. From a state of surplus liquidity, the system now tends to be in a state of deficit on several days, exhibiting some curious tendencies.

Money market funds have emerged as an alternative for individuals parking their funds for a short duration, typically three to six months. These funds are attracting conservative investors seeking better yields without significant risk as they provide a combination of safety, liquidity, and relatively stable returns. Also, given the recent volatility in the markets, some long-term investors are viewing money market funds as an interim solution.

SHANGHAI/SINGAPORE (Reuters) -China's attempts to keep the yuan from falling contributed to last week's chaos in money markets, sources involved say, pointing to the pressure behind the scenes as Beijing tries to guide its economy and markets through a major slowdown.

Beijing has pumped a record amount of short-term cash into its financial system to shore up lending in recent days, only to elicit a refrain familiar to China watchers this year — not enough, more required.

debt mutual funds that invest their assets in highly liquid assets such as cash and cash equivalents. These funds offer high liquidity coupled with a low level of risk. It is worth remembering that they are not as safe as cash, however, their risk level is extremely low.

The call from the FPC came as it identified liquidity mismatch in money market funds as a «key vulnerability» in 2015 and 2021.

(Reuters) — U.S. bond funds saw significant outflows in the week ending Oct. 4, driven by concerns about prolonged elevated interest rates, while money market funds garnered substantial inflows as investors recalibrated their risk exposure amid a bond market sell-off.

Leading Swiss asset management bank UBS has announced the debut of its first live pilot of a tokenized Variable Capital Company (VCC) fund on the Ethereum blockchain in Singapore. 

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Leading Swiss bank UBS has launched a live pilot of a tokenized version of its variable capital company (VCC) fund as part of Project Guardian, an initiative led by Singapore’s central bank. 

call money market by October, central bank Executive Director Ajay Kumar Choudhary said on Sunday. The pilot of the wholesale CBDC, known as the Digital Rupee-Wholesale (e-W), was launched on November 1, 2022, with the use case being limited to the settlement of secondary market transactions in government securities. «The RBI will introduce the wholesale CBDC in the call market either this month or next month,» Choudhary said on the sidelines of the G20 Leaders' Summit here. The introduction of CBDC was announced in the Union Budget 2022-23 by Finance Minister Nirmala Sitharaman and necessary amendments to the relevant section of the RBI Act, 1934, were made with the passage of the Finance Bill 2022. The RBI picked nine banks — State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, YES Bank, IDFC First Bank and HSBC — for its pilot project for wholesale CBDC. Besides, the central bank has already rolled out a pilot in the retail version of the CBDC (e-R) on December 1, 2022.

The funds aim to maintain a net asset value of $/€/£ 1 per share while any excess earnings generated through interest on the portfolio holdings will be distributed to investors via dividends.

Beyond bond and money market funds, all other asset types faced outflows for the month.

Lothar Mentel (pictured), CEO and chief investment officer of Tatton Investment Management

money market is closed today, August 16, on account of Parsi New Year. The trading in the money market will resume on Thursday, August 17.