Big Banks to America
Here comes a huge push in the media to get rid of cash. Now big banks are telling their bigger clients, shove off if you want to park cash. Now if you want to put your money in the market we can help you with that, but cash? Cash will be demonized big time coming up.
The push comes as the globe is awash in cash, reflecting soft economic growth and low interest rates that limit investment. Some asset managers have been increasing the amount of cash they are holding in their portfolios, in part because of an increased focus by the Securities and Exchange Commission on liquidity management in mutual funds.
Jerome Schneider, head of Pacific Investment Management Co.ís short-term and funding desk, which advises corporate and institutional clients, said that as a result of the bank actions, he and his customers have discussed as cash alternatives boosting investments in U.S. Treasury bonds, ultrashort-duration bond funds and money-market funds.
Maybe this could help reposition MYGA sales in the future...