Assets in money market funds have been growing at an astounding pace over the past two years, rising 33%, or by $600 billion, to reach $2.4 trillion, the International Herald Tribune reports.The inverted yield curve has been driving their growth, as they offer higher returns that long-term bonds. The 100 largest money market funds, with holdings due to mature in about 30 days, yielded an average of 4.98%, according to
“The risk premium has reached a historic low everywhere,” said Jeremy Grantham, chairman of
Some are already warning, however, that interest rates will be coming down, and with them, money market fund yields. Bill Gross of