Reported 27 days ago
Mohamed El-Erian noted that sizable cash reserves are allowing investors to secure attractive yields in global bond markets, which is helping to mitigate losses in this asset class. With US money market fund assets reaching a record high of $6.32 trillion, the demand for Treasury bonds remains strong despite upcoming interest rate cuts from the Federal Reserve. El-Erian emphasized that the substantial cash on the sidelines reflects a fear of losing future interest income, prompting investors to quickly engage in the bond market.
Source: YAHOO