Don’t hold your breath waiting for cash to come flooding out of money-market funds.
That’s the message from Hong Mu, a portfolio manager at Penn Mutual Asset Management, while speaking by phone with MarketWatch on Wednesday.
But the Federal Reserve likely would need to cut rates below 1% to spur significant money-market outflows, a level that likely would coincide with fears of a recession. Or bond yields would need to climb much higher than they are now.
