Money funds holdings of commercial paper continued declining in the latest month, falling to 25.0% of taxable holdings. Repurchase agreements also dropped sharply in April, the latest month's statistics available from the Investment Company Institute, to 19.2%. U.S. Government agency securities increased, from 10.6% to 11.7%, on the month, while most other holdings remained relatively stable. T-Bills and Treasury securities continued growing; they now represent 9.7% of holdings.
Money market mutual funds held $736.4 billion (25.0%) in CP at the end of April, $567.0 billion (19.2%) in repo, $344.3 billion (11.7%) in Govt agencies, $321.4 billion (10.9%) in corporate notes, $281.8 billion (9.6%) in CDs, $212.7 billion (7.2%) in T-bills, $159.8 billion (5.4%) in Eurodollar CDs, $155.9 billion (5.3%) in "Other" securities (which includes bankers' acceptances and cash reserves), $95.2 billion (3.2%) in bank notes, and $72.5 billion (2.5%) in other Treasury securities.
Though money funds' CP holdings declined in the month, they still increased by $71.6 billion over the past year. But their percentage of total portfolios fell, from 32.3% to 25.0%. Money funds now own approximately 42% of the $1.758 trillion commercial paper market. Asset-backed CP accounts for about 44% of the overall CP market, as of April 2008 (according to the Federal Reserve Board's seasonally adjusted CP Supply totals).
Corporate notes rebounded slightly in April, rising from 10.8% to 10.9%, but they too suffered a steep decline from their year ago level (16.4%). Government agency securities increased their percentage the most, rising from 5.9% to 11.7%. T-Bills too took a big leap, rising from 3.1% to 7.2% over the year through April 2008.
