The Wall Street Journal'​s CFO Journal wrote a story late last week, entitled, "Investors Pulling Money out of Prime Money Funds." It says, "Assets in money market funds that invest in short-​term corporate debt securities have fallen to 17-​year lows, according to new data from the Investment Company Institute, a fund industry trade group. Investors are pulling their money from the investment vehicles ahead of money market fund reform due to take effect in October. Assets held by prime money market funds fell to $​990 billion for the week ended July 27, the first time since September 1999 that the total has fallen below $​1 trillion, said an ICI spokeswoman. The total is down $​18 billion from a week earlier.... The withdrawals are starting to have an effect on borrowing rates. The money fund managers had invested corporate money in commercial paper, but the threat of more redemptions ahead of the reforms has made them less willing to invest for periods extending past Oct. 14. That in turn is causing some issuers, particularly banks, to pay to borrow in the commercial paper market for longer periods. The increased investment has started to push up the London Interbank Offered Rate, or Libor, as a consequence. While some companies have begun moving their funds out of money market funds, others are still waiting, which is increasing uncertainty in that market. "Most of the big money managers are not getting clear answers from their investors," said one banker. "​The companies are keeping their cards close to their chest.""

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