Money-Market Fund Assets Hit Another New Record High as Domestic Bank Depos Surge To Pre-SVB Levels

Amid all the volatility of the last few weeks in stocks, money markets have seen a constant inflow of funds (six straight weeks) with the last week adding $23.4BN to total MM fund AUM to a new record high of $6.324TN…

Source: Bloomberg

That is $188BN of inflow in six weeks – the biggest since the turn of the year seasonal flows.

At the same time, US banks saw almost $53BN of deposit inflows in the week-ending 09/04, pushing total (seasonally-adjusted) deposits to their highest since before the SVB collapse…

Source: Bloomberg

On a non-seasonally-adjusted basis, US bank deposits soared $118BN last week – also back to its highest sine SVB…

Source: Bloomberg

Excluding foreign deposits, domestic bank deposits soared on both an SA (+$60BN) and NSA (+$137BN) basis…

Source: Bloomberg

…back above pre-SVB crisis levels…

Source: Bloomberg

After last week’s crash, domestic bank loan volumes rebounded modestly….

Source: Bloomberg

Finally, while US bank reserves at The fed have been trending lower, US equity market cap has stalled (at record highs)…

Source: Bloomberg

Which is more likely? A collapse back to reality for stocks (hard landing) or a huge sudden surge in reserves at The Fed?