Money-Market Funds Hit Record Level

Total assets in money-market mutual funds reached a record of nearly $3.5 trillion this week, as the flight to safety -- which has its roots in the start of the credit crunch last summer -- continued.

IMoneyNet says in its weekly Money Fund Report that $14.5 billion was added to money-market funds for the week ended Tuesday.

"We have weeks where there are net outflows, but going over the past year since the credit mess began we've seen inflows almost every week," says Connie Bugbee, managing editor of the report.

Investors shifted $5.3 billion in cash away from prime institutional funds into municipal-bond funds, which are considered safer. Government funds do not hold commercial paper, which is a short-term debt instrument for corporations that is considered riskier because it is not backed by collateral. ...