MMF Assets Plunge on Tax Date
ICI's latest "Money Market Fund Assets" release says, "Total money market fund assets1 decreased by $31.27 billion to $2.55 trillion for the week ended Wednesday, June 18, the Investment Company Institute reported today. Among taxable money market funds, Treasury funds (including agency and repo) decreased by $13.34 billion and prime funds decreased by $17.58 billion. Tax-exempt money market funds decreased by $340 million. Assets of retail money market funds decreased by $1.31 billion to $897.89 billion. Among retail funds, Treasury money market fund assets decreased by $570 million to $198.94 billion, prime money market fund assets decreased by $460 million to $512.74 billion, and tax-exempt fund assets decreased by $280 million to $186.21 billion. Assets of institutional money market funds decreased by $29.95 billion to $1.65 trillion. Among institutional funds, Treasury money market fund assets decreased by $12.78 billion to $699.16 billion, prime money market fund assets decreased by $17.12 billion to $883.05 billion, and tax-exempt fund assets decreased by $60 million to $71.15 billion." Monday (June 16) was a quarterly corporate tax payment date, so outflows are to be expected; we should see additional outflows at quarter-end as well. In other news, see the update, "FASB Improves Financial Reporting of Repurchase Agreements." Dated June 12, the release says, "The Financial Accounting Standards Board (FASB) today issued a new standard to improve the financial reporting of repurchase agreements and other similar transactions. Accounting Standards Update No. 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures, changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements. It also requires enhanced disclosures about repurchase agreements and other similar transactions."
