Money market funds hit a high

Total assets of U.S. money market mutual funds rose to a record high $2.965 trillion during the week ended Wednesday as investors sought safety amid wider mortgage-related loan losses.

Investors added a net $34.28 billion to money market funds, according to the Money Fund Report newsletter in Westborough, Mass.

The previous record of $2.931 trillion was set a week earlier. Money market funds are considered a haven by investors, although the funds aren’t covered by federal insurance, as are bank savings accounts.

On Wednesday, U.S. stocks fell to the lowest level since September, and the yield on Treasury notes fell to a two-year low.

“There’s real insecurity out there,” said Connie Bugbee, managing editor of Money Fund Report. “People are waiting for another shoe to drop.”