The banking crisis that has shaken the US and Europe has put investors off risk, according to Barclays.
Analysts are forecasting that $1.5trn (£1.2trn) will be invested in low risk money market funds over the next year, rather than in stock markets or other investments.
While the move could limit losses for investors, it is likely to hobble growth by making it harder for companies to raise money.
The amount of money parked at all so-called money-market funds climbed to a fresh record last month.
Their cash pile jumped by roughly $304bn in three weeks, bringing total assets to $5.2trn as of March 29, according to data from the Investment Company Institute.
Barclays has said the continued exodus from banks and so-called prime funds - which invest in more risky debt - will only fuel the trend for greater safety.
Barclays money-market strategist Joseph Abate said: "We expect money fund balances to increase sharply in the next year.
"While it seems that the concerns about broader bank solvency are fading, they appear to have caught the attention of this deposit base.”
"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."
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2023-04-06 08:47:27Z
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