The Federal Reserve's latest "Flow of Funds" Z.1. Statistical Release shows that nonfinancial corporate businesses became the second-largest holder of money market mutual funds (behind the household sector) in the fourth quarter of 2009. Since 2007, funding corporations, which includes securities lenders, had been the second largest holder of money funds. The Fed's "Flow of Funds" contains a wealth of statistics on U.S. finances, including several tables on money market mutual funds.

The Fed's Table L.206 "Money Market Mutual Fund Shares shows the Household sector with $1,320 billion, or 40.5% of the $3.259 trillion as of Q4 2009. Nonfinancial corporate businesses held $684 billion, or 21.0%, while Funding corporations held $669 billion, or 20.5%. Life insurance companies ranked a distant fourth with $246 billion, or 7.5% of money fund assets. Other money fund holder categories include: Private pension funds ($96 billion, or 3.0%); State and local governments ($92 billion, or 2.8%); Nonfarm noncorporate businesses ($74 billion, or 2.3%); Rest of the world ($59 billion, or 1.8%); and State and local government retirement funds ($19 billion, or 0.6%).

During the Fourth Quarter of 2009, Funding corporations saw the largest decline in assets (down $50 billion), followed by Households (down $28 billion), Nonfinancial corporate businesses (down $16 billion) and Life insurance companies (down $11 billion). During 2009, Household holdings of money funds declined by $260 billion (-16.5%) and Funding corporation holdings declined by $175 billion (-20.8%), while Nonfinancial corporate business declined by just 7.0% (-$52 billion).

The Fed's Table L.121 "Money Market Mutual Funds" shows that Time and savings deposits represent the largest holding of money market funds with $573 billion (17.6%) as of Q4 2009. Agency- and GSE-backed securities rank second, according to the Z.1 "Flow of Funds," with $543 billion (16.7%), while Open market paper (which includes CP) accounts for $511 billion (15.7%). Security RPs (repo) ranks fourth with $480 billion (14.7%), Treasury securities rank fifth with $406 billion (12.5%), and Municipal securities rank sixth with $401 billion (12.3%). The remainder of money fund assets is invested in Corporate and foreign bonds ($170 billion, or 5.2%), Foreign deposits ($97 billion, or 3.0%), Miscellaneous assets ($59 billion, or 1.8%), and Checkable deposits and currency ($18 billion, or 0.5%).

The biggest increase in holdings over the past year was in Time and savings deposits, which rose by $218 billion (61.4%). Agencies, Treasuries, and CP all saw sharp declines in 2009, down $213 billion (28.2%), $171 billion (29.7%), and $108 billion (17.4%), respectively. To request a copy of a spreadsheet version of these money fund tables, e-mail info@cranedata.us.

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