Money market funds caught up in US debt ceiling stand-off

Money market funds, flush with deposits after investors sought safety during last month’s banking turmoil, are now confronted by the political stand-off over the US debt ceiling that threatens to disrupt their investment portfolios.

More than $440bn has poured into US money market funds since early March, according to data provider EPFR, in the wake of Silicon Valley Bank’s collapse, and as attractive returns drove investors out of ordinary deposit accounts.