Outflows of deposits from small banks paused last week, while outflows from large banks increased. This implies that funds continue to flow out of traditional banking and into money market funds or other alternative investments as investors search for yield. While it is too soon to declare the ... READ MORE >
Fed repo facility
Rising uncertainty stimulating a flight to cash
Uncertainty over the business cycle, a more restrictive monetary policy and the impasse over raising the nation’s debt ceiling are spurring a classic migration to the preferred habitat of spooked investors: risk-free securities. With the U.S. two-year yield now exceeding 5% and the Federal ... READ MORE >