Money market funds (MMF) are mutual funds that invest in short-term debt securities like Treasury bills, commercial paper, and certificates of deposit. They are low-risk and highly liquid. As of November, 2023, the total assets of global MMF were about US$5.71 trillion:
North America: $3.49 trillion
Europe: $1.64 trillion
Asia: $0.58 trillion
During anticipated rate cuts, the NAV of MMF tend to decrease due to the falling value of underlying debt securities with decreasing interest rates. Investors should recognize that MMF aren't entirely immune to interest rate risk.
Sparc @ 2023.11.15
