MMDT Cash Pool yield continues to climb

March 20 2023

The Fed voted to increase rates by 25 bps at the recent FOMC meeting. Since March of last year, the Fed has raised the target range of the Fed Funds rate at eight consecutive meetings. The Fed’s December Summary of economic projection shows expectations for higher rates in 2023. The MMDT Cash pool daily net yield climbed to 4.77% as of 2/27/23.

Current Cash Pool 7-day net yield View Yields

An official increase in rates provides the Cash Pool with the opportunity to reinvest more portfolio assets at even higher levels.

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 Short Term Bond Pool

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.

Article Coming to terms

Investors have begrudgingly capitulated to a still-hawkish Fed.

Acceptance is hard, and the financial markets have struggled with it this year. Investors turned relief about moderating inflation and a slowing pace of Federal Reserve rate hikes into the expectation that the conclusion of the tightening cycle is imminent.

Deborah A. Cunningham, CFA
03/2023

Your Representatives

Brian R. Willer, CIMA®,CFA

Federated Hermes
Senior Vice President 
Senior Sales Representative
Brian.Willer@FederatedHermes.com
617-335-0770

Brian is responsible for relationship management with MMDT participants.

Caroline Kafafian, CIMA®

MMDT Associate Sales Representative
Caroline.Nixon@FederatedHermes.com
724-809-1250

Caroline is responsible for relationship management with MMDT participants.

Wayne Perry

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.

DISCLOSURES

Past performance is no guarantee of future results.

There is no guarantee that any type of investment approach will be successful.

Variable and floating-rate loans and securities generally are less sensitive to interest rate changes but may decline in value if their interest rates do not rise as much or as quickly as interest rates in general. Conversely, variable and floating-rate loans and securities generally will not increase in value as much as fixed-rate debt instruments if interest rates decline.

Investors should carefully consider the portfolio's investment objectives, risks, charges and expenses before investing. Information about these and other important subjects is in the Investment Circular, which you should read carefully before investing.

Effective Duration: A measure of a security’s price sensitivity to changes in interest rates. One of the methods of calculating the risk associated with interest rate changes on securities such as bonds.

Issued and approved by Federated Investment Counseling

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