FT: US money market funds struggle as short-term rates near negative territory

If government money market funds have to keep investing at zero per cent, the economics of the industry “breaks down”, said Christopher Tufts, global head of portfolio management for JPMorgan Asset Management’s money market business.

“I wouldn’t be surprised if funds start to limit investor subscriptions or close outright to new [money].” “It’s definitely not a pleasant place to operate at this red-hot moment in time,” said Deborah Cunningham, chief investment officer of global liquidity markets at Federated Hermes, one of the world’s largest money market fund managers. “There’s really not much value anywhere.”

The full article is available at https://www.ft.com/content/0cff3e60-6591-493c-b85e-2d37d46f47a0

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