Banking crisis pushed over $286B to money market funds in two weeks: Report
1 min read
The banking crisis has led many investors to rotate their portfolio investments in the past two weeks, sending over $286 billion into United States money market funds so far in March, according to EPFR data
Money market funds inflows are driven by fears surrounding the financial system health as banks in the US and Europe face liquidity constraints amid monetary policy tightening.
On March 24, Deutsche Bank shares dropped due to an increase in the cost of insuring against its potential default risk. The German bank’s five-year credit default swaps, known as CDS, climbed 19 basis points (bps) from the previous day, closing at 222 bps, according to Reuters, which cited S&P Global Market Intelligence data.
In the United States, uncertainty still looms over regional banks as insurance on default for financial services firms Charles Schwab and Capital One soared last week, with the latest seeing credit default swaps jump over 80% to 103 bps as of March 20.
BREAKING: Credit Default Swaps (CDS), insurance on default on Charles Schwab EXPLODE pic.twitter.com/KJdNTq2xMm
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