Moody's, Citing Rates, Sees Tax-Free Influx Continuing

Johnson, Matthew
February 2005
Bond Buyer;2/25/2005, Vol. 351 Issue 32078, p6
Trade Publication
The article reports that in a week when tax-free money market fund assets rose to a new record level, Moody's Investors Service said it thinks the trend should continue. According to a report, more investors' wealth should be heading into money market mutual funds and away from bank deposits as the Federal Reserve Board continues to raise the short-term rates. Assets in money market mutual funds have steadily shrunk over the last three years while money on deposit at U.S. banks progressively grew. But now short-term rates have come up, and expectations are that they will keep rising, making it likely that investors will find money market mutual funds more appealing, Moody's analysts wrote.


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