So how have money market PMs fared during these times?
Total noob when it comes to money markets. Assuming that all these Fed rate increases have been docking value off of bond/bill portfolios, how exactly would a portfolio manager deal with this? Thank you!
Full disclosure: I have an interview in Treasury coming up soon, so really my question is how liquidity can be maintained along with portfolio value.
Money market funds have positive flows now - higher rates, and volatile market environment are factors contributing to this.
I don't think I've ever met a PM that only does money market. That's just one mandate across a dozen more, and those strategies are also used as a sleeve in other products (i.e. balanced funds, multi-asset funds, etc.).
Thank you for your response.
Hypothetically, if you're managing cash for a company and a lot of that cash is in bonds that have been devaluing over time, wouldn't you face a problem where liquidating those assets would mean less cash than before? I assume PMs would see this coming from a mile away and address this -- like you said, no PM would have all that cash in bonds.
Dolores pariatur repellendus et voluptatem. Repellendus eaque eos nulla tempore corporis. Minima laborum possimus harum fugiat voluptates velit.
Odit fuga ea et pariatur. Explicabo autem temporibus in voluptatum beatae. Dolor eveniet sapiente asperiores earum veniam aspernatur.
Maiores qui quia alias rem sint ducimus ut. Voluptate dolor temporibus accusamus deserunt qui labore. Saepe ipsam occaecati quia qui consequatur enim sed. Nobis quis voluptatem adipisci ipsa asperiores nobis enim.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...