A press release from Moody's writes "US money market funds boost European exposure by 16%; European funds stabilise AUMs and increase French exposure by 9%." It explains, "US-Dollar Prime money market funds (MMFs) have increased their total exposure to European financial institutions by 16% (USD 27 billion) in the first two months of Q3 2013, said Moody's Investors Service. Most of this increase is due to higher exposures to Swedish and French banks, which rose by 40% and 22% respectively. Within Euro-denominated MMFs, exposure to European financial institutions remained stable, albeit with significant country shifts, while Sterling MMFs reduced their exposure to the euro area by 6.5% (GBP 3.2 billion).... U.S. domiciled USD funds increased assets under management (AUMs) by 6% to USD 679 billion from USD 639 billion during the first two months of the third quarter.... Exposure to European financial institutions within US-Dollar Prime MMFs has risen significantly in Q3, with assets attributed to the region increasing by 16%." Yaron Ernst, Managing Director of Moody's Global Managed Investments Group, comments, "US money market funds have shown a much stronger appetite for investments in Europe in recent months. This reflects the subsiding concerns about Europe's financial system."
