Will cash remain king?

What are the expectations on the money market? 

The money market benefits from a favorable context with attractive yields, low volatility and low interest rate risk.  For some investors, these

Investments have become an important component of the asset allocation. Interest rate expectations continue to fluctuate, with differences between geographical areas. We expect the European Central Bank to cut rates by the end of the

Year. However ECB rates are expected to remain above 3% until 2025. Cash yields should therefore always be well positioned and investors appetite for the asset class should continue. In this context we believe it is important to be able to meet the

expectations of each investor. Ostrum asset Management's offer is well adapted

to all profiles. With more than 50 billion EUR in money markets assets we

are one of the leaders in this market.

Does the current context call for special vigilance?

 The money market investment strategies only invest in what is deemed to be high quality liquid assets. Currently we believe credit fundamentals will remain solid for the investment grade companies. However security selection and credit monitoring are a crucial part of the investment process. To do so, Ostrum Asset Management displays a strong credit research capability with 23 seasoned investment professionals spread across three continents. We are thus able to cover companies globally translating into enhanced investment opportunities. And finally our research process also incorporates an essential aspect, the ESG  dimension. We have effectively identified a correlation between companies with good ESG practices and those that are resilient in the money market portfolios. We can say that ESG selection is a source of opportunity which also contributes to reduce risk, a vital element for our investments.