The February issue of Crane Data's monthly Money Fund Intelligence newsletter ($500/yr) features the articles "Yields Hit Record Lows; Assets Aim at $4 Trillion," "Regulatory Landscape Changing Dramatically," and our monthly fund profile, "RBC's Voyageur Enters Institutional MM Space." Along with our regular money fund performance, statistics, indexes, rankings and news, MFI also contains discussion on the Group of 30 and the $1.00 a share NAV, plus our top-performing money fund tables.
In our "Regulatory Landscape" piece, we interview PriceWaterhouse Coopers Partner Tony Evangelista, who says of the Group of 30 report and the possibility of regulating money funds as banks, "Remember that Volcker has gone down that path before. This isn't the first time he's said these things should be bank products and more regulated.... Some people at least see that and recognize it for what it is."
On regulatory changes, Evangelista tells MFI, "You wonder how much traction reshaping the regulatory landscape will get. Products like money funds and other types of securities are likely by default to be scoped into the whole shifting of the landscape. Who has what oversight? What regulators are responsible for what products? There is a huge shakeout to come. Where it ends and what it means for money funds, who knows. You can be sure that they are going to be part of this sort of realignment and shifting that is happening."
Evangelista downplays the liklihood of radical change in the February issue. He says, "'Where does money fund regulation fall in the broader scheme of priorities?' You've got the economy that is crashing and burning; you've got bailout plans that are in transition, you've got the TARP program that people think is just sort of hemorrhaging.... But I don't know that money fund overhaul is a big priority, to be honest."
MFI asked, "Do you think the money fund is broken?" He responds, "I don't think so. You had special factors contributing to the Reserve Fund failure. But I think conceptually and intuitively the model makes sense." Evangelista adds, "In the end I am not sure that a complete overhaul of money market funds; their structure and Rule 2a-7 in particular is a priority or even warranted."
To request a copy of the February issue, write info@cranedata.us or call 1-508-439-4419.
