The Wall Street Journal writes "​Here'​s One Set of Potential Losers from the ECB'​s Rate Move". The Journal can'​t help itself anymore from spinning negative on anything money fund related, writing, "European money market funds, which have been pushing into riskier strategies to stem outflows, may be among the big losers now that the European Central Bank has cut interest rates to negative territory. Money market funds occupy an unglamorous but crucial part of the financial markets. They provide companies, banks and governments with short-​term financing at low rates. For investors, they are typically seen as a low risk way to diversify surplus cash holdings. But they have been buffeted by persistently low interest rates that have seen investors put their money in higher yielding stocks and bonds, or alternative cash-​management accounts. What do negative rates mean for the industry? Now, the widely expected ECB moves may contribute to a further decline in rates on the short-​term debt that money funds buy.... Continued low yields could constrain the ability of European money market funds to generate income for their investors at a time when they are already struggling to justify their existence." The Journal quotes our Peter Crane, "You'​re seeing a continued, slow shrinkage of the sector. Historically, money funds took share from banks because of a yield advantage, but as yields compress that advantage is nullified." The piece explains, "​Euro-​denominated assets in money market funds alone now sit around E80 billion ($​108.​8 billion), down from E111 billion as of the end of May 2012, according to Crane Data LLC <​b:>`​_. If yields on short-​term debt in the euro-​zone turn negative for a protracted period, some funds could be forced to close to new investment."

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