Big week for money market funds amidst financial turmoil

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Investors looked to move their assets to safety by depositing cash into money market funds due to bank stability concerns. It's the largest inflow since the COVID-19 pandemic.

The financial turmoil of the past week sent investors running for safety.That fund sector attracted their biggest weekly influx of cash since the early part of theUS money-market funds in the week up to March 15, attracted about $120.93 billion, the largest inflow since April 2020.Fears over the collapse of Silicon Valley Bank, Signature Bank and concerns surrounding Europe's Credit Suisse, drove demand for high-quality, liquid assets. Retail money accounted for $20.

The rise was led by government funds, which invest primarily in securities like Treasury bills, repurchase agreements and agency debt.The coronavirus pandemic set the weekly inflow record in March 2020 at $286 billion.moved to protect customers as it faced a liquidity crunch following a $2 billion loss.

 

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