How is the market for money funds? What are some challenges for the money funds’ returns?...
How is the market for money funds? What are some challenges for the money funds’ returns?
How is the market for bonds? Some government bond yields has turned negative in Europe and Asia in the past. Which countries are/were with negative yields? Why? What does/did this indicate?
Homework Answers
The market for money funds has been volatile over years due to various geopolitical risks and currency exchange risk as well as rising degrowth across major nations. Major challenge acroos this market is competitive scenario and offering highest returns to consumers with lowest expense ratio for mutual funds and related products.
Past few years we have seen massive devaluation and FII Selling as well as global effects of Brexit in Europe which has caused interest rates to increase to boost economic inflow of money and hence bond yields have decreased into negative zone because of inverse relationship with interest zones. Decreasing bond yield means that value of bond has increased and has become safe bet for investment. Over the years countries like Switzerland, Denmark and Sweden have seen massive negative bond yields .
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How is the market for money funds? What are some challenges
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