Prime Asset Outflows Decelerate
ICI's latest "Money Market Fund Assets" report shows MMFs overall decreasing $6 billion in the latest week, but Prime funds fell by $56 billion, half their drop the previous week (they fell $110 billion last week, $85 billion the week before and $60 billion 3 weeks ago). Prime has declined in 19 out of the past 20 weeks (-$740B). Since Oct. 29, 2015, Prime assets have fallen by a massive $1.045 trillion, or 72%, and Tax Exempt funds have declined by another $117 billion, or 48%. Combined these two non-Government sectors (which will be subject to the possibility of emergency gates and fees starting today) have fallen by $1,163 billion (-68%) since this giant migration started. Government funds (including Treasury funds) gained $51 billion in the past week (after gaining $88 billion last week and $102 billion the prior week). They've increased by $1,095 billion since last October (more than doubling, up 108%) and by $888 billion, or 73%, YTD. (YTD in 2016, Prime MMFs are down by $871 billion, or 68%.) ICI's latest release says, "Total money market fund assets decreased by $6.22 billion to $2.65 trillion for the week ended Wednesday, October 12, the Investment Company Institute reported today. Among taxable money market funds, government funds increased by $51.24 billion and prime funds decreased by $56.10 billion. Tax-exempt money market funds decreased by $1.36 billion." It continues, "Assets of retail money market funds decreased by $3.41 billion to $938.05 billion. Among retail funds, government money market fund assets increased by $6.28 billion to $556.42 billion, prime money market fund assets decreased by $8.74 billion to $261.34 billion, and tax-exempt fund assets decreased by $950 million to $120.28 billion." The update adds, "Assets of institutional money market funds decreased by $2.81 billion to $1.71 trillion. Among institutional funds, government money market fund assets increased by $44.96 billion to $1.55 trillion, prime money market fund assets decreased by $47.36 billion to $151.73 billion, and tax-exempt fund assets decreased by $410 million to $7.26 billion."
