Reported 8 months ago
Investors are already strategizing portfolio adjustments in anticipation of the next US debt-ceiling confrontation, even though it is still several months away. The reinstatement of the debt limit on Jan. 1 is expected to pose challenges for money-market funds, the largest holders of Treasury bills, as the US government nears the point of debt default. Managers anticipate slowing supply and the need to consider safer but lower-yield options like the Federal Reserve’s overnight reverse repurchase agreement facility.
Source: YAHOO