Money market funds (MMFs) have had a rocky ride of late, with Refinitiv Lipper data for the week to July 14 showing outflows of $18.6 billion globally.
The only places where even the smallest yields are achievable are sterling and US dollar denominated funds.
Euro-denominated funds have been in a negative-yielding environment for more than six years through a combination of European Central Bank (ECB) buying of corporate paper, the huge increase in excess liquidity at the ECB and credit spreads being at their lowest levels since the middle of 2007.
We caution cash investors about reaching for yield in such a low-rate environment
Kim Hochfeld, State Street Global Advisors
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