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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

The Federal Reserve held its benchmark rate steady for the second consecutive month at its latest policy-setting meeting. In his comments, Fed Chair Jerome Powell pointed to the healthy balance sheets of consumers and small businesses as an unexpected source of strength for the broader economy. Powell also mentioned that Fed officials are not yet satisfied with the progress being made on inflation and that officials believe monetary policy may not yet be strict enough, leaving the door open for another rate hike, potentially as soon as the December meeting. The possibility of a higher-for-longer rate environment helped the MMDT Cash pool daily net yield rise to 5.60% as of November 1, 2023.

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

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.

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

Fed stands pat again in November

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MMDT is the state sponsored investment pool offered by the Commonwealth of Massachusetts to its public entities

,CFA

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.

Deborah A. Cunningham, CFA Nov. 1, 2023

Mixed economic signals and bond-market turmoil allow the Fed to push its major rate decision to the December’s meeting.

Wait and see

ARTICLE

Donald Ellenberger Nov. 1, 2023

The Fed didn’t hike, but could, and Powell discounted the surge in Treasury yields.

A focused Fed

ARTICLE

Deborah A. Cunningham, CFA Nov. 1, 2023

Mixed economic signals and bond-market turmoil allow the Fed to push its major rate decision to the December’s meeting.

Wait and see

ARTICLE

VIEW YIELDS