Fitch's Local Govt Investment Pools
Fitch Ratings published "Local Government Investment Pools - 3Q24," which states, "Fitch Ratings' local government investment pool (LGIP) indices experienced a cumulative drop in the third quarter of 2024 (3Q24), consistent with seasonal trends, but are up yoy. Combined assets for the Fitch Liquidity LGIP Index and the Fitch Short-Term LGIP Index were $609 billion at the end of 3Q24, representing a decrease of $18 billion qoq and an increase of $47 billion yoy. The Fitch Liquidity LGIP Index and the Fitch Short-Term LGIP Index were down 2.5% and 3.6% qoq, respectively, versus average decreases of 2.5% and 4.2% for the same period in the past three years." It continues, "Weighted average maturities (WAMs) continued to fall in 3Q24, with the Fitch Liquidity LGIP Index WAM decreasing to 33 days, still higher than prime '2a-7' money market funds at 24 days. The Fitch Short-Term LGIP Index ended the quarter with a duration of 1.32 years, up 8.3% since last quarter. Both Fitch indices ended 3Q24 with decreased average yield profiles with average net yields of 5.02% for the Liquidity Index and 4.39% for the Short-Term, as the Fed implemented a 0.50% rate cut in September." Fitch also says, "The Fitch Liquidity LGIP Index increased exposure to Repurchase Agreements by 1.51% and decreased exposure to Treasuries by 2.04% qoq. Exposure to Government Agencies, Money Market Funds, and Corporates increased in aggregate by 2.56% qoq."
