Money-market funds offer choice for European investors
Compared to the US, European banks face less competition for the €9 trillion of consumer deposits. They offer 2% on 1-year deposits. Money-market funds invest in short-term debt instruments, offer liquidity and an average 3.4% yield, but manage only €1.5 trillion, almost all of it institutional money. In the US, a third of the $5.5 trillion comes from retail customers.

18 August 2023

Bloomberg