MMF Assets Jump; Hillary Hits MMFs
Money market fund assets rose for the third straight week, according to ICI's latest "Money Market Mutual Fund Assets" report. The release shows a big bounce back in Institutional Prime MMFs after outflows last week. The release says, "Total money market fund assets increased by $19.55 billion to $2.69 trillion for the week ended Wednesday, October 7, the Investment Company Institute reported today. Among taxable money market funds, Treasury funds (including agency and repo) decreased by $7.49 billion and prime funds increased by $23.20 billion. Tax-exempt money market funds increased by $3.83 billion. Assets of retail money market funds increased by $3.69 billion to $899.85 billion. Among retail funds, Treasury money market fund assets increased by $1.22 billion to $206.60 billion, prime money market fund assets increased by $540 million to $513.25 billion, and tax-exempt fund assets increased by $1.93 billion to $179.99 billion. Assets of institutional money market funds increased by $15.86 billion to $1.79 trillion. Among institutional funds, Treasury money market fund assets decreased by $8.71 billion to $786.54 billion, prime money market fund assets increased by $22.66 billion to $934.61 billion, and tax-exempt fund assets increased by $1.91 billion to $67.35 billion." Year-to-date, money fund assets are down $45 billion, or 1.6%. In other news, The Wall Street Journal writes, "Clinton Proposes Big Bank 'Risk Fee'," which says, "Hillary Clinton sought middle ground in one of the most contentious debates roiling Wall Street, proposing a new "risk fee" on large financial institutions dubbed "too big to fail," but stopping short of demanding the breakup of such firms backed by populist critics.... Mrs. Clinton also proposed new rules governing the "shadow banking" system, which has expanded rapidly outside the conventional banking sector. The plan calls for new constraints on borrowing by brokerages, which don't always face the tight borrowing limits that banks do. She also proposed requiring more public disclosures from hedge funds and new disclosures and safety measures for a type of short-term loan called a repurchase agreement, which played a role in the financial panic of 2008." A Reuters piece says, "Clinton would also pursue additional oversight of the "shadow-banking" sector by imposing additional margin and collateral requirements on risky short-term borrowing; reviewing recent regulatory changes to the money market fund industry for possible holes; creating new reporting requirements for hedge funds and private equity firms; and strengthening the authority of the Financial Stability Oversight Council."
