Bloomberg speculates that "China's CIC May Have $5.4 Billion Frozen in Money-Market Fund" based on recent filings. The article says, "The fund had placed $11 billion in U.S. money-market funds, according to filings with the U.S. Securities and Exchange Commission.... A Sept. 29 SEC filing shows that Stable Investment held 11.1 percent of Reserve Primary's institutional shares at the beginning of the month. Based on the 48.9 billion institutional shares outstanding as of May 31, the most recent information available, Stable Investment's stake would have totaled about $5.4 billion. Stable Investment has also invested roughly $5.9 billion in three other U.S. money market funds, according to documents filed earlier this year with the SEC. That includes $2.1 billion in the Invesco Aim Liquid Assets Portfolio; $2.3 billion in the JPMorgan Prime Money Market Fund; and $1.5 billion in Deutsche Asset Management's DWS Money Market Trust." Also, listen to NPR's "Money Market Managers On Loans To Businesses", which quotes money fund managers Deborah Cunningham and Kathy Roy. What would convince money funds to invest more in CP? Cunningham says, "Time and additional confidence and a turn in market sentiment."
