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MMDT Cash Pool's yield increases after latest Federal Reserve increase
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MMDT Cash Pool's yield increases after latest Federal Reserve increase
Active total return strategies built on the insights of experienced managers
After taking a brief hiatus, the Federal Reserve returned to its aggressive approach at its latest policy-setting meeting. The central bank skipped a rate hike in June, but in July it increased the fed funds target range by 25 basis points to a 22-year high of 5.25-50%. Officials do not have a meeting in August, meaning they will have two month’s worth of economic reports to scrutinize, including several measures of inflation and the labor market. The bump in rates helped the MMDT Cash pool daily net yield to rise to 5.43% as of July 31, 2023.
MICROSHORT BOND
Total Return Bond Fund
FHCOX
MICROSHORT BOND
FHMIX
Short-Intermediate Total Return Bond Fund
Current Cash Pool 7-day net yield
Your Representatives
Federated Hermes
Participant Services Wayne.Perry@FederatedHermes.com
1-888-965-MMDT (6638)
Wayne is responsible for managing the MMDT Participant Services team from the High Street office.
Wayne Perry
Federated Hermes
Associate Sales Representative
Caroline.Kafafian@FederatedHermes.com
724-809-1250
Caroline is responsible for relationship management with MMDT participants.
Caroline Kafafian, CIMA
MMDT Short Term Bond Pool
Continue exposure to liquidity, with preference for quality (government and municipal securities) further out the curve.
Views are as of August 6 2020 and are subject to change based on market conditions and other factors. These views should not be construed as a recommendation for any specific security or sector.
MICROSHORT BOND
For more information on how you can seek to take advantage of a rising-rate environment and invest in the MMDT Cash Portfolio, call 617-335-0770.
Shorten durations to limit interest rate risk, and opportunistically buy out further on occasion.
Use high percentages of floating rate securities to take advantage of Fed rate hikes.
MMDT Cash Pool's yield moves to 4.76%
Federated Hermes
Senior Vice President
Senior Sales Representative Brian.Willer@FederatedHermes.com
617-335-0770
Brian is responsible for relationship management with MMDT participants.
Brian R. Willer, CIMA
Yield continued to climb in MMDT Cash Pool
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Falling in line
ARTICLE
After 10 straight swings at the economy in the form of rate hikes, the Federal Reserve in June dropped it back into the toolbox by not raising the fed funds target range. But it updated its Summary of Economic Projections to suggest more hikes to come. The markets finally listened, helping to normalize the yield curve.
MMDT is the state sponsored investment pool offered by the Commonwealth of Massachusetts to its public entities
®
,CFA
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With rates nearing a peak, now could be a good time to review investment options for capital that can be committed for a longer time period than typical operating cash (i.e. OPEB, longer term operating cash, retirement, trust funds). The MMDT Short Term Bond Pool offers a competitive yield and total return record, with appropriate risk characteristics for our public sector clients.
Views are as of August 6 2020 and are subject to change based on market conditions and other factors. These views should not be construed as a recommendation for any specific security or sector.
MMDT Short Term Bond Pool
Continue exposure to liquidity, with preference for quality (government and municipal securities) further out the curve.
Shorten durations to limit interest rate risk, and opportunistically buy out further on occasion.
Use high percentages of floating rate securities to take advantage of Fed rate hikes.
Susan Hill, CFA
Aug. 1, 2023
Despite reports of a growing divide among FOMC participants as to the proper course for monetary policy, there was no evidence of dissension in the statement from the July meeting. Their hike of the fed funds target range was unanimous; it’s just that they simply don’t know where the economy is situated and are wisely being cautious.
Middle ground
ARTICLE