The Most Turbulent Quarter Awaits Money Markets

The article “Money Markets Are Facing the Most Tumultuous Quarter Since the Financial Crisis” by Vanderbilt Avenue Asset Management White papers With Emad A. Zikry discusses the challenges facing the money markets in the near future. The author argues that the low-interest rate environment, combined with new regulations and market pressures, is creating a perfect storm that will make the next quarter the most turbulent since the 2008 financial crisis.

One of the key issues facing the money markets is the low-interest rate environment. With interest rates near zero, investors are struggling to find returns on their cash. This is leading to a surge in demand for money market funds, which invest in short-term debt securities such as commercial paper and Treasury bills. However, this surge in demand is putting pressure on money market funds to find new investments that offer higher yields.