Money-market investors are increasing the speed at which they’re yanking money out of the funds.
Money funds have experienced outflows of $9 billion per day this week, according a report out today from Nomura Securities International. Some $62 billion has left money market funds in the past two weeks, according to mutual-fund trade group the Investment Company Institute. The outflows in the last day could be even higher, traders say.
Flows to money-market funds are closely watched, as the giant Reserve Primary Fund “broke the buck,” or dipped below its sought-after $1 net asset value. That sparked a run on other funds and froze a key part of the global financial system.
