Traders Who ‘Just Want to Survive’ Sit on $5 Trillion Cash Pile
- Nowhere-to-hide market keeps asset managers on defensive
- For first time in years, money funds are offering juicy yields
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From stocks to bonds, credit to crypto, money managers looking for somewhere to hide from the Federal Reserve induced storm battering virtually every asset class are finding solace in a long reviled corner of the market: cash.
Investors have $4.6 trillion stashed in US money-market mutual funds, while ultra-short bond funds currently hold about $150 billion. And the pile is growing. Cash saw inflows of $30 billion in the week through Sept. 21, according to figures from EPFR Global. Where once that stash yielded practically nothing, the vast bulk now earns upwards of 2%, with pockets paying 3%, 4% or more.