The collapse of several US regional banks and the UBS-Credit Suisse merger in March spurred investors to look for alternative homes for their money. For many the answer was Money Market Funds. Utilizing EPFR Fund Flows and Allocations data, we analyze which mandates and regions have benefited the most in recent weeks.
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Riding the waves in liquidity funds
In the face of this uncertainty, and the unwillingness of major Western central banks to suspend the battle against inflation, investors continued to cut risk, increase their exposure to China’s rebound story and steer cash into liquidity funds.