Bank of America
- Investors are on track to pour a record $1.4 trillion into money market funds this year.
- The surge in assets comes amid a spike in interest rates, with cash yielding around 5%.
- The 2023 surge in money market fund assets eclipses the 2020 inflow surge sparked by investor panic.
Our Chart of the Day is from Bank of America, which shows that investors are on track to pour a record $1.4 trillion into money market funds this year.
The surge eclipses the more than $1 trillion of inflows seen in 2020, and is several times larger than the annual inflows seen during the low interest rate environment during the 2010s.