Page 2 - Money Market Fund

MMFs suitable for current environment, to gain on hardening interest rates

Most schemes in this category avoid taking any credit risk

Linking loan rates to external benchmark boosts RBI policy transmission

In response to each policy rate cut by the central bank, the bond market passed on the cuts almost immediately

RBI raises concerns over increase in assets of money market mutual funds

The RBI said MFs showed a marked preference for long-term debt while also holding equity shares.

RBI announces outright purchase of Rs 10k-cr of bonds from secondary mkts

The central had till now been simultaneously buying and selling bonds of equal amounts to keep the operation liquidity neutral.

AT1 bonds are risky but back on investor radar after YES Bank episode

AT1 bonds are hybrid instruments and pay a slightly higher rate of interest compared to similar non-perpetual bonds.

Meet Alibaba spin-off Yu'e Bao: The world's biggest money-market fund

Yu'e Bao has accrued 370 million account holders and $211 billion in assets in just four years. As its model is replicated, the government is enforcing new regulations