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Money Market Outflows Accelerate, But Interpretation Difficult
Cash left money market funds for a second consecutive week in an ostensibly notable development that might've been attributable to tax-related flows.
After a small outflow during the prior period, money funds shed more than $18 billion in the week to June 21, data released on Thursday evening showed.
Excluding tax week in April, it was the largest outflow since December, according to ICI. Inflows to money funds were unabated following SVB's collapse in March, until $4.7 billion hit the exits m
nice article.. the problem is even more complicated than that. more than mere mortals can understand. Where the funds come from is important, but near impossible to predict. And even if it were possible, predicting the impact for a given drop in reserves is also near impossible. The rising rates are having an impact on economic activity so the demand for credit if falling. By how much? who knows..
I like to keep attuned to what is happening is Las Vegas. several high profile projects on the strip have been put on hold or delayed over the past 6 months. I am sure that the higher rates are the cause of the delays. some of the principles have even said so. Projects that made sense with 3% loans don’t make sense at 8%.
That a true tragedy. But let’s hope that some nice private lenders or equity are not left holding the bag! Just as the Hamptons season kicks off. There IS a human face to this stuff…..