Global Capital's writes, "Slight growth in US prime money market funds not yet significant." It says, "Flexible investors are returning small amounts of money into prime funds after the mass exodus experienced after money fund reform, according to Moody's report. However, a managing director at Barclays believes this is not yet a significant trend. At the moment, some of the more flexible investors have been migrating a little bit of their cash into prime funds, said Joe Abate, managing director, fixed income research at Barclays. However, despite the suggestion by Moody's of significant growth, Abate remains skeptical. At the moment, there isn't a big yield differential between prime and the government market, said Abate.... Some of what is going on is that the investor base which would normally be in a prime fund, and who shifted into government only funds following money fund reform, may now be coming back in. However, he sees this as a slow process: To get approval to invest in a prime fund takes time.... He therefore advised against putting too much stock in recent reports of an increase in prime funds, as the result depends on how much data are measured."

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