Tackling volatility with public debt money market funds
Volatility in financial markets has made money market funds a preferred asset allocation tool. Investors looking for a high-quality strategy with no exposure to financials and other corporates, a stable net asset value, and strong liquidity should consider public debt constant net asset value (CNAV) money market funds.
Thibault Malin, Deputy Head Global Money Markets, tells Chief Market Strategist Daniel Morris these funds can invest only in securities issued by sovereigns and supernational institutions and agencies. He notes: “The spread is positive on almost all maturities. That means it is becoming attractive and [makes] public debt money market funds competitive against Euro overnight rates.”
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