Etienne Bordeleau-Labrecque, vice president, portfolio manager, Ninepoint Partners, tells BNN Bloomberg that money market funds that invest in short-term government bonds have seen a surge of investor interest as they are offering yields not seen in the last 15 years. He says investors who have taken money out of bank deposits and deployed them in such money market funds may need to revisit their strategy once central banks cut interest rates and the yields from these funds start to drop. He adds that if equities prove expensive, investors may choose to park their money in longer-term government bonds instead, although he cautions there is higher risk in longer durations if rates change quickly.

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