April 25, 2024
Finance
MMFs gain popularity ahead of US presidential poll
[THE INVESTOR] South Korean investors are pouring their money into short-term financial instruments ahead of the US presidential election this week, according to a market tracker on Nov.8.
Money market funds in South Korea posted a net capital inflow of 9.4 trillion won (US$8.20 billion) in the first three days of November, according to fund information provider Zeroin.
MMFs are short-term debt securities, such as Treasury bills and commercial papers. They are widely considered as safe as bank deposits but with a higher return.
Local MMFs had a net capital inflow of 3.5 trillion won last month after recording a net outflow of 4.8 trillion won in August and 13.8 trillion won in September.
“Market anxiety has grown since the results of the US presidential elections are unclear,” said Cho Ik-jae, a senior analyst at HI Investment & Securities. “The market is responding sensitively to the scenario of the Republican candidate Donald Trump being elected, as it means difficulties in pushing for policy consistently.”
(theinvestor@heraldcorp.com)
Money market funds in South Korea posted a net capital inflow of 9.4 trillion won (US$8.20 billion) in the first three days of November, according to fund information provider Zeroin.
MMFs are short-term debt securities, such as Treasury bills and commercial papers. They are widely considered as safe as bank deposits but with a higher return.
Local MMFs had a net capital inflow of 3.5 trillion won last month after recording a net outflow of 4.8 trillion won in August and 13.8 trillion won in September.
“Market anxiety has grown since the results of the US presidential elections are unclear,” said Cho Ik-jae, a senior analyst at HI Investment & Securities. “The market is responding sensitively to the scenario of the Republican candidate Donald Trump being elected, as it means difficulties in pushing for policy consistently.”
(theinvestor@heraldcorp.com)
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