U.S. money market fund assets exceed $7 trillion for the first time

According to data provided by Crane Data, which has long studied the money market fund sector, the assets under management of U.S. money market funds increased by about $91 billion in the week ending November 13, and the total size exceeded $7 trillion for the first time, which is a milestone for the industry. The popularity of the industry among investors has skyrocketed due to high and reliable yields. Before the $7 trillion mark, the size of U.S. money market assets had set new record highs for several consecutive months, refuting questions about whether the industry could continue to be popular as Federal Reserve officials cut interest rates from a 20-year high. After U.S. policymakers cut interest rates by 50 basis points in September and another 25 basis points this month, investors continued to flock to money market funds, mainly because money market funds have higher yields than other instruments - especially bank deposits. Compared with banks, these funds tend to be slower to pass on the impact of low interest rates. (Jinshi)