Investors are shunning high-risk investments and opting instead for low-risk funds in the wake of the recent banking turmoil, according to Barclays.
Analysts at the bank predict that as much as £1.2trn might be switched out of stock markets over the next twelve months due to fears over a possible crash.
Inflows into low-risk money-market funds hit a new record last month of US$304bn, said Barclays, taking the total held in these types of assets to US$5.2trn.
US banks have already seen a rush of people transferring deposits out of smaller regionals into giant Wall St institutions following the collapse of Silicon Valley and Signature banks on the basis that bigger is safer, but this trend is now being mirrored by institutions said Joseph Abate, Barclays money market strategist.
"We expect money fund balances to increase sharply in the next year.
"Institutional investors have noticed that they were not getting as much compensation for taking on unsecured bank risk by keeping bank deposits above the $250,000 insurance cap."