While money markets experienced unprecedented turmoil in the second half of 2007, the asset composition of taxable money market mutual funds showed surprisingly little change for the year. The soon-to-be-releassed "2008 Investment Company Fact Book" will show a modest uptick in Treasuries, Government Agencies and repos, and a decline in commercial paper and corporate notes, the movements amount to less than a 10 percent overall shift in money fund allocations.

The ICI table (the current year isn't available online yet) shows U.S. Treasury Bills and Securities rising from 4.3 to 6.9%, U.S. Government Agency Issues rising from 6.8 to 8.2%, and Repurchase Agreements rising from 20.3 to 22.0%. Certificates of Deposit fell from 10.0 to 9.2%, while Eurodollar CDs rose from 4.3 to 5.2%. Commercial Paper decreased from 31.2 to 27.5%, Bank Notes rose from 1.9 to 2.9%, and Corporate Notes fell from 17.0 to 11.6%. Finally, Other Assets, which include Bankers' Acceptances and Cash Reserves, rose from 4.3 to 6.5%. The Average Maturity at yearend 2007 was 40 days, down from 45 days in 2006.

Sharp declines in the now-extinct extendible asset-backed commercial paper and the endangered species listed SIV-related commercial paper and medium-term notes would be reflected in the CP and Corporate Note declines. Meanwhile, Treasury holdings reached their highest level since 2003, but their levels remain far below the early 1990's, when Treasury holdings accounted for 17 to 18 percent of taxable money fund portfolios. Commercial paper too has seen much higher levels in prior years, while Corporate Notes and Repos appear to have been the fastest growing category over the past decade.

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