Summer is just around the corner in the northern hemisphere, and it looks like Brits are going to have particularly good summer bodies this year. This is because the nation has been collectively forced onto a low-calorie diet with the price of bread and other staples skyrocketing and inflation remaining stubborn at 10.1%.

There will be little opportunity to show those bodies off, of course – summer in the UK just means that the rain is a little warmer.

The lowdown

• 🎈 UK inflation remained above 10% in March which may prompt another rate rise.

• 🏦 Credit Suisse sues SoftBank in $440 million claim relating to Greensill Capital.

• 🪫 Tesla’s misses earnings as gross margin tumbles to 19.3% after series of price cuts.

Flex your finance muscle

Money market funds

In the wake of the mini banking crisis just experienced (which may have further to run), savers are pouring their deposits into money market funds instead ($). But what are they and are they really safer?

Money market funds are a type of mutual fund that invest in short-term, high-quality debt instruments, such as T-bills, commercial paper, certificates of deposit, and other low-risk, highly liquid securities. The funds are designed to provide investors with a relatively stable and secure option to preserve their capital, earn a modest return, and maintain liquidity.

Since money market funds invest in high-quality, short-term securities, they tend to have lower risk compared to other types of investments, such as stocks or long-term bonds. For instance, the odds of the US Treasury defaulting on a short-term bond are low and if that happens, we have bigger problems. It's important to note that money market funds are not insured by the FDIC, though. So, if you have less than $250k in savings, you might be taking on more risk by using a money market fund rather than a bank insured by the FDIC.

Featured stories

Western Alliance kicks off US regional banks reporting

Regional bank Western Alliance reported a rebound in deposits after jittery depositors pulled money out in the wake of the SVB collapse. The bank regained nearly $3 billion in the past few weeks, though it is still down about $4 billion from its December peak.

The bank's cost of deposits in Q1 increased by 1,550% to $232 million ($), up from $14 million a year ago. Analysts warn that higher interest rates may lead to increased deposit costs, impacting banks' profits.

The news that deposits were returning boosted other US regional bank stocks, but it was not all good news. Citizens Financial reported a $7.5 billion, or 4.7%, decrease in deposits in Q1, more than analysts had expected but thankfully not enough to set off a panic.

The content we're consuming today

• FT: Bloomberg is contemplating life without its founder ($).

• MarketWatch: Andy Beal, America’s richest banker, makes a massive bond bet on inflation.

• NY Times: Reddit Wants to Get Paid for Helping to Teach Big A.I. Systems ($).

Off-balance sheet items

• This is wild! A top ultramarathoner was disqualified from a race after traveling in a car part of the way. The worst part is that this was only good enough for third place. Did the top two travel in even faster cars?

The bottom line