The Association for Financial Professionals posted "The 2a-7 Money Fund Changes: What it Means for Corporate Treasury", which says, "According to the 2010 AFP Liquidity Survey, money funds are the second-largest holding next to bank deposits. The new 2a-7 money fund changes that recently went into effect were designed to give money funds liquidity, transparency and more safety. As a result of these changes, yield will decrease since the portfolios will be shorter in maturity. From the survey, sponsored by Promontory Interfinancial Network, the majority of respondents indicated they are "comfortable" or "very comfortable" with most of the specifics associated with these specific rule changes to MMFs: 30 percent weekly liquidity requirement, 10 percent overnight liquidity requirement, Decrease from 10 percent to 5 percent of portfolio holdings for illiquid securities, Decrease WAM from 90 days or less to 60 days or less, Weighted average life of 120 days or less, 0.5 percent maximum concentration per issuer for Tier 2, and 3 percent portfolio investment in A2/P2 paper with at 45 day limit."
