Barclays warn of a 2nd wave of deposit outflows from US banks – the ‘sleepy’ depositors


content provided with permission by FXStreetRead full post at forexlive.com

Barclays says that the ‘first wave’ of the run was related to solvency fears. That wave may be almost over. But ….

  • “We think the first wave of outflows may be nearly over. .. But the recent tumult regarding deposit safety may have awakened ‘sleepy’ depositors and started what we believe will be a second wave of deposit departures, with balances moving into money market funds.”

Barclays graph on the upswing of funds into money funds:

—-

You’d have to think that what Barclays is calling a ‘second wave’ will not be an urgent bank run, its not based on solvency fears.