Explainer: Why European money market funds inflows are lagging behind the U.S. torrent?

  • 📰 Reuters
  • ⏱ Reading Time:
  • 45 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 97%

Deutschland Nachrichten Nachrichten

Deutschland Neuesten Nachrichten,Deutschland Schlagzeilen

In Europe, investors put $19.3 billion into euro-denominated money market funds in March, Refinitiv Lipper data shows, when the Credit Suisse crisis rocked markets. But the inflows in Europe pale in comparison to the torrent that swept into US funds

The lower level of inflows suggests investors remained confident about Europe's banks in general despite the collapse of Credit Suisse, some analysts said. Other analysts said it was due to the fact that euro money market funds are underdeveloped relative to U.S. funds and are focused more on private sector, particularly bank, debt.

"The investor reaction would seem to suggest that investors have got more faith in European banks right now than they do in the U.S," said Michael Metcalfe, head of macro strategy at State Street Global Markets. ECB board member Isabel Schnabel said in late March that euro zone banks had not seen a general deposit outflow despite the banking tremors.Inflows into European MMFs did jump in March, showing that some companies and investors are drawn to them when things get choppy.

But Callahan also said some investors are nervous about putting their money into European MMFs, which are typically invested in bank debt. Federico Cupelli, deputy director for regulatory policy at EFAMA, said: "Sovereigns in the EU do not have the same credit standing, maybe except the German government. You can go back to the 2015 euro crisis to see why that is the case.

 

Vielen Dank für Ihren Kommentar.Ihr Kommentar wird nach Prüfung veröffentlicht.

US Treasury printing daily more $$$ having debt anywhere from $30 to $180 trillion bringing World economies down and creating unstoppable inflation. Countries must stop trading in US dollars to save own currency/economy from collapse and US blackmail/sanctions.

Wir haben diese Nachrichten zusammengefasst, damit Sie sie schnell lesen können. Wenn Sie sich für die Nachrichten interessieren, können Sie den vollständigen Text hier lesen. Weiterlesen:

 /  🏆 2. in DE

Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen