“Goddard’s comments are supported by the data. Chrystal Pozin, a principal at consultancy Treasury Strategies Inc., reports that since 2007, institutional management funds have surged 45% to $9.1 trillion, with much of that growth in money market funds, which have doubled to $420 billion. It has, she reports, been the biggest corporate swing to safety since late 2001, following the terrorist attacks on Sept. 11, 2001. Pozin says she recently hosted a panel where one treasurer confirmed that his firm is spreading its cash around, but because there are such low limits on how much can be put in any single institution, they’re running out of places to park the money. Even bank deposits are being limited by treasuries because of concerns about the risks at the banks themselves, she reports.
Corporate Investment: A Real Flight to Safety, Treasury & Risk, August 1, 2008.”