FT Alphaville » What next for European MMFs?
Fee waivers and duration extension, according to Fitch’s Fund & Asset Manager rating group.
They’re talking, of course, about how European money market funds
will react to the ECB’s decision to cut its deposit rate to zero, a fact
which should soon push the Euro overnight index average (Eonia) to
historical lows of between -15 and +15 bps, putting MMF yields at risk
of negativity.
As the team notes on Wednesday, if there’s any precedent it’s probably in what’s happened to US MMF funds already:
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