Fed Policy Change Put a Ceiling on What it Takes to Be Safe: Pimco

The video discusses recent market moves, focusing on European bond negativity and a recent policy change affecting interest on excess reserves. This change, while minor, impacts investors focused on capital preservation by making safe investments like money market funds less attractive. The video also analyzes the flat yield curve, suggesting that short-term investments in T-bills and money market funds have become less appealing for risk-averse investors.

What was the interest rate on excess reserves moved down to?

How does the recent policy change affect investors focused on capital preservation?

Why might money market funds be considered less compelling options now?

What impact does a flat yield curve have on investment strategies?

What does the speaker suggest about the front end of the yield curve?