MMFs lower risky investments in low-rate environment – paper

Funds analysis and research

A lower risk-free rate encourages money market funds to increase their buffer of safe assets, says research published by the Federal Reserve Bank of New York.

In the ‘Do low rates encourage yield seeking by money market funds?’ blog post, Gabriele La Spada discusses his research seeking to understand how money market funds’ investment strategies evolve in a low-rate environment.

Specifically, La Spada’s aim is to find “whether competitive pressure leads these funds to reach for yield in a low

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: