CSOP USD Money Market Fund Wrap - 20221003

The Fed officials reiterated Thursday that they will keep raising interest rates to restrain high inflation.

Volatility in financial markets also reflected spillovers from recent events in the UK – where the new government’s fiscal measures have seen the pound plummet – but made clear that these would not cause the Fed to pause its tightening campaign.

According to Cleveland Fed chief Loretta Mester, “real interest rates – judged by the expectations over the next year of inflation – have to be in positive territory and held there for a time”.

According to Loretta, there was a distinction between US markets and what is happening in the UK, where the Bank of England (BOE) announced Wednesday that it would launch unlimited bond buying to address market dysfunction. When the Fed announced its bond purchases in the early months of the pandemic, it did so at a time when it was also lowering rates to support the economy.

As of 20220930, CSOP USD Money Market Fund (AUM $107.96mn) had gross yield at 2.76% and 7-day annualized net yield at 2.59%*.

Source: CSOP, Bloomberg, Federal Reserve as of 20220930. * Gross yield is based annualized yield of underlying holdings. 7-day net yield is calculated based on calendar days and NAVs in full decimal.

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