Money Market Funds Fueling 100 Billion Shekel Deposit Certificate Market
Translated & summarized from TheMarker by baba
The market for deposit certificates, which bundle bank deposits into tradable bonds, is growing significantly in Israel, reaching about 100 billion shekels. This expansion continues despite recent interest rate decreases. These certificates are popular as a liquid alternative to bank deposits, often yielding higher returns. The article will examine the intermediaries involved and potential risks for money market fund investors.
The story in 5 lines · by baba
- Israel's deposit certificate market has reached approximately 100 billion shekels in issuances.
- New companies are being established to issue deposit certificates despite interest rate cuts.
- Deposit certificates are seen as a liquid alternative to bank deposits with potentially higher returns.
- The growth of the deposit certificate industry is continuing without signs of decline.
- The article will investigate intermediaries and risks associated with these financial products.
Despite recent interest rate cuts, the market for deposit certificates, which bundle large bank deposits into tradable bonds, is expanding with the establishment of new companies. These instruments have become popular as a liquid alternative to bank deposits, often offering higher returns. The growth in this behind-the-scenes industry, known as deposit certificates, shows no signs of slowing down, with the sector already reaching issuances totaling approximately 100 billion shekels. The article aims to explore the intermediaries profiting from this trend and assess any potential risks introduced to purchasers of money market funds.