The financial turmoil of the past week sent investors running for safety.
They ran to money market funds.
This fund sector attracted their biggest weekly inflow of cash since the early part of the COVID-19 pandemic, according to data reported by Bloomberg.
US money market funds in the week to March 15 attracted about $120.93 billion, the biggest inflow since April 2020.
CREDIT SUISSE TO BORROW UP TO DKK 54 billion. USD FROM SWISS NATIONAL BANK
US dollar bills are seen in this illustration. (REUTERS/Dado Ruvic/Illustration/Reuters Photos)
Fears of the collapse of Silicon Valley Bank, Signature Bank and concerns about Europe’s Credit Suisse drove demand for high-quality liquid assets.
Total assets rose to $5.01 trillion, the highest on record dating back to 2007.
Retail money accounted for $20.15 billion of the total increase, while institutional cash increased by $100.78 billion.
The increase was led by sovereign wealth funds, which primarily invest in securities such as Treasury bills, repurchase agreements and agency debt.
Credit Suisse logo on bank branch. (REUTERS/Arnd WIegmann/File Photo/Reuters Photos)
SIGNATURBANK IS IN CONNECTION BEFORE THE COMPOSITION OF THE COMPANY
The Corona pandemic set the weekly inflow record in March 2020 at $286 billion.
After 40 years, SVB, the country’s 17th largest, was closed FDIC a week ago as regulators moved to protect customers as it faced a cash crunch after a 2bn loss. USD.
It was the biggest bank crash since the financial crisis.
Federal regulators said Sunday that New York-based Signature Bank was closed to protect consumers and financial system after SVB’s collapse.
Police officers leave Silicon Valley Bank’s headquarters in Santa Clara, California on March 10, 2023. US authorities moved in and seized SVB’s assets after a run on deposits made it no longer viable for the mid-sized bank to stay afloat… (Noah Berger/AFP via Getty Images/Getty Images)
GOLDMAN BOUGHT THE PORTFOLIO SVB RECOMMENDED BOOKED LOSS ON
New York-based Signature Bank was founded in 2001 and was popular among crypto companies. The institution provided deposit services for its customers’ digital assets, but did not provide loans secured by them.
Credit Suisse lost almost a quarter of its value on Wednesday, falling to a new record low after its biggest investor said it could not provide the Swiss bank with more financial assistance.
On Thursday, Credit Suisse said it would borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank.