In an economic environment that remains uncertain, the third quarter closed on a resilient note for money markets. The European Central Bank paused its easing cycle, keeping rates unchanged, while short-term yields remained attractive with low volatility. Across the Atlantic, amid a weakening labor market, the Federal Reserve cut its key interest rates by 25 basis points during its September meeting.
Our strategy
Amid central banks’ wait-and-see stance and political uncertainties, the money market has emerged as a safe haven combining stability and attractive returns.
- The ECB has paused its easing cycle, allowing short-term rates to maintain attractive yield levels. This elevated level enabled us to invest at favorable rates while prudently managing portfolio sensitivity.
- Some issuers adjusted their financing conditions by improving their spreads by a few basis points. We seized these opportunities to strengthen portfolio diversification.
- As year-end approaches, we are maintaining a significant liquidity buffer and a range of short maturities to meet investors’ cash needs.