Multi-asset managers stockpile cash as fears over US mount

Multi-asset managers are raising cash levels and adding to government bonds as fears over the US economy spook investors.

The surprise decision by the US Federal Reserve not to taper bond purchases last month, combined with growing concern over the country’s debt ceiling have weighed on sentiment, sending treasury yields lower and weakening the dollar. Last week, Federal agencies shut down for an indefinite period as the Republican-led House of Representatives refused to ratify Barack Obama’s budget. This decision left 800,000 public-sector employees without pay and could cost the US an estimated 0.15% quarterly GDP growth for every week the impasse continues. The shutdown comes ahead of a more serious s...