Wells Fargo published a Fixed Income Strategy titled, "Aligning Investment Guidelines After U.​S. Government Downgrade," which tells us, "On May 16th, 2025, Moody'​s Ratings downgraded the long-​term issuer rating of the U.​S. government to Aa1 from Aaa, citing ongoing fiscal concerns.... The recent decision by Moody'​s brought the U.​S. government'​s credit profile into alignment with the other two Nationally Recognized Statistical Rating Organizations (​NRSROs).... [​But] the market reaction was fairly limited since the latest Moody'​s downgrade was not necessarily a surprise. Still, downgrades over the past week have created questions from investors." Wells writes, "Corporate and public entity investors are heavy users of Treasury bills and other products directly related to the U.​S. government such as those from U.​S. Agencies and Government Sponsored Enterprises as well as products substantially invested in government securities, namely government money market funds. The downgrade of the U.​S. government had a direct impact on related organizations, most notably U.​S. Agencies and GSEs that are rated by Moody'​s and issue (​or have outstanding debt) in fixed income markets. On Monday of this week, the impacted organizations include Fannie Mae, Freddie Mac, FHLBank System, Farm Credit System, REFCO, Private Export Funding Corporation, and the Tennessee Valley Authority, which all now have a Moody'​s long-​term rating of Aa1. In its review of government MMFs, Moody'​s shared that it is maintaining a Aaamf rating on government money market funds as its assessment considers many elements, for which credit quality is just one.... In support of maintaining a Aaamf rating for relevant money market funds, Moody'​s states, '​These funds will continue to demonstrate a very strong ability to meet the dual objectives of providing liquidity and preserving capital.'" They add, "Though the concern from investors about the credit of government MMFs is understandable due to the bulk of underlying instruments, a one notch long-​term rating downgrade of the U.​S. Treasury and related government issuers, is not enough in isolation to change the rating of a fund. According to an FAQ written by the Investment Company Institute several years ago which directly answers if a downgrade of the U.​S. government affects money market funds, 'If the US government short-​term credit rating were downgraded, money market funds might be affected, but likely only if the short-​term credit rating dropped below investment grade.' Moreover, several MMF families have published announcements this week to reassure investors that AAA ratings are not at risk. A selection of these fund family perspectives is highlighted below." They quote, "AllSpring. Despite the rating downgrade to the U.​S. government, Allspring will continue to maintain its Aaa-​mf (​triple-​A money fund) Moody’​s rating on all of its government and Treasury money market funds. The funds have continued to maintain their AAAm rating from S&​P despite S&​P'​s downgrade of U.​S. government debt in 2011 [​and] Dreyfus. We do not expect any impact on Dreyfus Aaa/​AAA money market fund (​MMF) ratings as a result of the downgrade. We expect limited market reaction similar to the anticipated Fitch downgrade in 2023 as opposed to the S&​P surprise action in 2011. We do not expect to see any MMF outflows on the back of the downgrade. We do not believe this will have any impact on MMF investments as it relates to changing haircuts in their respective collateral schedules."

A Linked-​In post from Jean-​Jacques Barbé​ris, Deputy CEO of Amundi Asset Management announces a new entrant in the money market "​portal" space in Europe. It states, "​In an environment marked by persistent uncertainty around interest rates, effective cash management is key to achieving financial resilience. One of our roles, at Amundi, is to optimize our clients' liquidity management through constant innovation. This is why I am very pleased with the recent launch of Fund Channel Liquidity, the first European digital platform designed to simplify investments in money market funds for treasurers." He explains, "By developing such solutions, we are not only enhancing the efficiency of our clients but also contributing to the financial sovereignty and resilience of the European ecosystem. Recently recognized by the French Treasurers' Association, this new digital platform offers: Seamless access to a wide range of money market funds; Advanced analytical tools to compare and select the funds; Personalized portfolio simulations to align investments and cash management objectives; Secured order execution and streamlined custody management; and, Real-​time monitoring of risk exposure." The post adds, "This initiative reflects our commitment to providing transparent, efficient, and client-​focused solutions, in collaboration with our partners Fund Channel and CACEIS." Click here to learn more.

Though Crane Data is knee-​deep in preparations and focused on its upcoming big show, Money Fund Symposium, which will take place June 23-​25 in Boston, we'​re also preparing for our next European Money Fund Symposium, which is now scheduled for Sept. 22-​23, 2025, in Dublin, Ireland. European MFS had previously been scheduled for Sept. 25-​26, but we recently changed the dates to avoid sold-​out hotels the weekend of Sept. 26-​28 due to the Steelers-​Vikings football game in Dublin. Our 2024 European MFS event in London attracted a record 210 attendees, so we expect our 2025 event to once again be the biggest money market event in Europe. The preliminary agenda has been posted and registration ($​1000 to attend) is now live. European Money Fund Symposium offers "​offshore" money fund portfolio managers, and money market investors, issuers, dealers and service providers a concentrated and affordable educational experience, as well as an excellent and informal networking venue. Meanwhile, our domestic U.​S. Money Fund Symposium 2025 is scheduled for June 23-​25, 2025 at The Renaissance Boston Seaport, in Boston, Mass. The full agenda for the largest gathering of money market fund managers and cash investors in the world is available and registrations are still being taken. Money Fund Symposium attracts money fund managers, marketers and servicers, cash investors, money market securities dealers, issuers, and regulators. Visit the Money Fund Symposium website at www.​moneyfundsymposium.​com for more information. Registration is $​1,​000. (Note: Our room block is SOLD OUT on Tuesday night, but Sunday and Monday might still be available. We'​re seeking more rooms, but you may have to look for nearby hotels. These include: the Seaport Hotel Boston, Omni Boston Hotel at the Seaport and The Westin Boston Seaport District.) Finally, mark your calendars for our next Money Fund University "​basic training" event, scheduled for Dec. 18-​19, 2025, in Pittsburgh, Pa. Let us know if you'​d like more details on any of our events, and we hope to see you in Boston in June, in Dublin in September or in Pittsburgh in December!

The Federal Reserve Bank of New York sent out a statement entitled, "Reverse repo counterparties list updated," which says, "JPMorgan 100% U.​S. Treasury Securities Money Market Fund and Prime CNAV Master Fund (​managed by UBS Asset Management) have been added to the list of reverse repo counterparties, effective May 16.." Money funds on the Fed'​s RRP counterparty list now include: AB Government Money Market Portfolio; Allspring Govt MMF, Money Market Fund, and Treasury Plus MMF; BlackRock Liquidity Funds: FedFund, T-​Fund, and TempCash; BlackRock Money Market Master Portfolio and Treasury Money Market Master Portfolio; Dreyfus Government Cash Management, Dreyfus Institutional Preferred Government Money Market Fund, Dreyfus Treasury and Agency Liquidity Money Market Fund and Dreyfus Treasury Obligations Cash Management; American Funds U.​S. Govt MMF and Capital Group Central Cash Fund; Cavanal Hill Government Securities Money Market Fund and Cavanal Hill U.​S. Treasury Fund; Schwab Govt MF, Retirement Govt MF, Treasury Oblig MF, US Treasury MF and Value Advantage MF; Columbia Short-​Term Cash Fund; DWS Govt & Agen Fund and Deutsche Government Cash Mgmt Portfolio; Edward Jones Money Market Fund; Federated Hermes Capital Reserves Fund, Government Obligations Fund, Government Obligations Tax-​Managed Fund, Government Reserves Fund, Inst Prime Obligations Fund, Municipal Obligations Fund, Prime Cash Obligations Fund, Tax-​Free Obligations Fund, Treasury Obligations Fund and Trust for U.​S. Treasury Obligations; Fidelity Cash Central Fund, Securities Lending Cash Central Fund, Government Portfolio, Money Market Portfolio, Treasury Portfolio, Government MMF, Money Market Fund, Treasury Money Market Fund, Govt Cash Reserves, Govt MMF and VIP Govt MMP; Franklin MM Port; Goldman Sachs Financial Square Government Fund, Money Market Fund, Treasury Obligations Fund and Treasury Solutions Fund; HSBC U.​S. Govt MMF; Invesco Govt and Agency Port, Govt MMF, Premier US Govt MP and Treasury Port; JNL Govt MMF and JNL/​Dreyfus Govt MMF; JPMorgan 100% U.​S. Treasury Securities MMF, Liquid Assets MMF, Prime MMF, Tax Free MMF, U.​S. Govt MMF and U.​S. Treasury Plus MMF; Western Asset Govt Port, Liquid Reserves Port and US Treas Reserves Port; Morgan Stanley Institutional Liquidity Funds Govt Port, Govt Securities Port, Prime Portfolio, Treasury Port and Treasury Securities Port; Northern U.​S. Govt MMF, US Govt Select MMF, Govt Port, Govt Select Port, Treasury Port and NTAM Treasury Assets Fund; PIMCO Government Money Market Fund; PGIM Core Govt MMF and Inst MMF; Principal Govt MMF; RBC Funds U.​S. Govt MMF; SSgA Institutional Liquid Reserve Portfolio, Inst US Govt MMF, State Street Navigator Securities Lending Govt MMP and Treasury Plus Money Market Portfolio; T. Rowe Price Cash Reserves Fund, Government Money Fund, Govt Reserve Fund, Treasury Reserve Fund and U.​S. Treasury Money Fund; UBS Govt Master Fund, Limited Purpose Cash Inv Fund, Prime CNAV Master Fund and Treasury Master Fund; First American Govt Obligations Fund and Treasury Obligations Fund; Vanguard Treasury MMF, Market Liquidity Fund, Cash Reserves Federal MMF, Federal MMF and Money Market Portfolio; and Wilmington U.​S. Govt MMF.

Ledger Insights posted "VanEck launches tokenized money market fund with Securitize." The brief says, "VanEck is the latest asset manager to launch a tokenized treasury fund, the VanEck Treasury Fund (​VBILL) with Securitize as its partner for tokenization, fund administration and transfer agency. Securitize is also BlackRock'​s partner for its BUIDL money market fund." They quote Kyle DaCruz, Director of Digital Assets Product at VanEck, "​By bringing U.​S. Treasuries on-​chain, we are providing investors with a secure, transparent, and liquid tool for cash management, further integrating digital assets into mainstream financial markets. Tokenized funds like VBILL are enhancing market liquidity and efficiency, underscoring our commitment to providing value to our investors." The article adds, "The British Virgin Island fund targets institutional and qualified investors with minimum subscriptions starting at $​100,​000 for investments on Avalanche, BNB Chain, and Solana, and $​1,​000,​000 on Ethereum. Most demand for tokenized money market funds comes from within the digital asset community, especially stablecoin issuers looking to use tokenized assets for their reserves. For example, just two stablecoin issuers (​Sky and Ethena) account for $​2.​1 billion or 72% of BlackRock'​s BUIDL fund."

ICI published its latest weekly "Money Market Fund Assets" report Thursday. The weekly series shows money fund assets falling $​5.​0 billion to $​6.​941 trillion, after rising $​37.​6 billion the week prior and falling $​4.​1 billion two weeks ago. Four weeks ago, assets fell $​125.​4 billion. (These massive tax outflows were the largest weekly outflow in history). Money fund assets have still risen in 26 of the last 41, and 37 of the last 56 weeks, increasing by $​637.​4 billion (​or 10.​1%) since the Fed cut on 9/​18/​24 and increasing by $​963.​5 billion (​or 16.​1%) since 4/​24/​24. MMF assets are up by $​892 billion, or 14.​8%, in the past 52 weeks (​through 5/​14/​25), with Institutional MMFs up $​450 billion, or 12.​4% and Retail MMFs up $​443 billion, or 18.​2%. Year-​to-​date, MMF assets are still up by $​91 billion, or 1.​3%, with Institutional MMFs down $​43 billion, or -​1.​0% and Retail MMFs up $​134 billion, or 4.​9%. ICI'​s weekly release says, "Total money market fund assets decreased by $​5.​01 billion to $​6.​94 trillion for the week ended Wednesday, May 14.... Among taxable money market funds, government funds decreased by $​6.​80 billion and prime funds increased by $​5.​21 billion. Tax-​exempt money market funds decreased by $​3.​42 billion." ICI'​s stats show Institutional MMFs decreasing $​1.​3 billion and Retail MMFs decreasing $​3.​7 billion in the latest week. Total Government MMF assets, including Treasury funds, were $​5.​655 trillion (​81.​5% of all money funds), while Total Prime MMFs were $​1.​148 trillion (​16.​5%). Tax Exempt MMFs totaled $​138.​7 billion (​2.​0%). It explains, "Assets of retail money market funds decreased by $​3.​73 billion to $​2.​87 trillion. Among retail funds, government money market fund assets decreased by $​2.​76 billion to $​1.​81 trillion, prime money market fund assets increased by $​1.​89 billion to $​931.​28 billion, and tax-​exempt fund assets decreased by $​2.​86 billion to $​126.​70 billion." Retail assets account for well over a third of total assets, or 41.​3%, and Government Retail assets make up 63.​1% of all Retail MMFs. They add, "Assets of institutional money market funds decreased by $​1.​29 billion to $​4.​07 trillion. Among institutional funds, government money market fund assets decreased by $​4.​04 billion to $​3.​84 trillion, prime money market fund assets increased by $​3.​32 billion to $​216.​36 billion, and tax-​exempt fund assets decreased by $​567 million to $​11.​95 billion." Institutional assets accounted for 58.​7% of all MMF assets, with Government Institutional assets making up 94.​4% of all institutional MMF totals. According to Crane Data'​s separate Money Fund Intelligence Daily series, money fund assets have increased by $​28.​6 billion in May (​through 5/​14/​25) to $​7.​328 trillion, last month assets hit a record high of $​7.​384 trillion on April 3. Assets fell by $​24.​4 billion in April, they rose $​2.​8 trillion in March, $​94.​2 billion in February, $​52.​8 billion in January, $​110.​9 billion in December, $​200.​5 trillion in November, $​97.​5 billion in October, $​149.​8 billion in September, $​109.​7 billion in August, $​16.​6 billion in July, $​15.​7 billion in June and $​91.​4 billion in May. They declined by $​15.​8 billion in April 2024. Note that ICI'​s asset totals don'​t include a number of funds tracked by the SEC and Crane Data, so they'​re over $​330 billion lower than Crane'​s asset series.

A U.​K. publication, Interactive Investor, published, "How money market funds can beat your bank savings rate," which explains, "Aberdeen Investments' Gordon Lowson, whose team manages abrdn Sterling Money Market fund, explains why money market funds deliver a return ahead of bank savings accounts, with yields generally slightly above the Bank of England interest rate." Lowson says in the interview, "If it'​s committed directly to a bank account, these funds outperform bank accounts in pretty much all circumstances. The reason for that is because typically a bank would be instant access and because of that it would be very closely linked to the overnight rate. That overnight rate, there would probably be some form of margin in there or fee in there for the bank as well. Whereas with a liquidity fund, because we can put our WAM (​weighted average maturity) out to, for example, in this fund up to 180 days, we can go further along the curve and we can eek more value for that." He comments, "We can buy things, for example, like the floating rate product that I mentioned earlier, where you get a pick-​up over the overnight rate. So, they'​re normally linked to SONIA, which is the overnight rates. So basically, because it'​s a pooled vehicle, you can just take slightly more risk, go slightly out of the curve, and outperform a bank account. The other key thing to remember as well is that if you have your money in a bank account, you have a single-​name risk with that bank, where if we'​re investing in a portfolio of high-​quality banks, your credit profile is significantly better in a liquidity fund. In actual fact, most short-​term liquidity funds, are actually AAA-​rated by rating agencies to deflect the strength of the credit within the portfolio." Lowson adds, "​Often the mistake that people make when they look at these funds is they think in terms of market stress, how would you cope with outflow? Well, the reality is in terms of market stress, people go into cash, they'​re not taking it out of cash. So, I think people sometimes lose sight of the reality of that, you know. To my mind, these funds are safe havens in terms of market stress as opposed to a systemic risk."

ICI released its latest monthly "Money Market Fund Holdings" summary, which reviews the aggregate daily and weekly liquid assets, regional exposure, and maturities (​WAM and WAL) for Prime and Government money market funds. It tells us, "The Investment Company Institute (​ICI) reports that, as of the final Friday in April, prime money market funds held 45.​7 percent of their portfolios in daily liquid assets and 61.​2 percent in weekly liquid assets, while government money market funds held 75.​1 percent of their portfolios in daily liquid assets and 86.​0 percent in weekly liquid assets." Prime DLA was up from 44.​0% in March, and Prime WLA was up from 58.​8%. Govt MMFs' DLA fell from 76.​29 and Govt WLA was down from 87.​4% for the previous month. ICI explains, "At the end of April, prime funds had a weighted average maturity (​WAM) of 25 days and a weighted average life (​WAL) of 50 days. Average WAMs and WALs are asset-​weighted. Government money market funds had a WAM of 36 days and a WAL of 93 days." Prime WAMs were 2 days shorter and WALs were unchanged from the previous month. Govt WAMs were 1 day shorter and WALs were 2 days longer from March. Regarding Holdings by Region of Issuer, the release tells us, "Prime money market funds' holdings attributable to the Americas declined from $​613.​44 billion in March to $​608.​99 billion in April. Government money market funds' holdings attributable to the Americas declined from $​5,​294.​89 billion in March to $​5,​122.​76 billion in April." The Prime Money Market Funds by Region of Issuer table shows Americas-​related holdings at $​609.​0 billion, or 54.​5%; Asia and Pacific at $​180.​5 billion, or 16.​1%; Europe at $​300.​0 billion, or 26.​8%; and, Other (​including Supranational) at $​28.​7 billion, or 2.​6%. The Government Money Market Funds by Region of Issuer table shows Americas at $​5.​123 trillion, or 90.​6%; Asia and Pacific at $​129.​4 billion, or 2.​3%; Europe at $​377.​5 billion, 6.​7%, and Other (​Including Supranational) at $​26.​4 billion, or 0.​5%.

Money fund yields (​7-​day, annualized, simple, net) fell 3 bps to 4.​11% on average during the week ended Friday, May 9 (​as measured by our Crane 100 Money Fund Index), after rising 2 bps and falling 1 bp the previous two weeks. Fund yields should remain relatively flat until the Fed moves rates again. They'​ve declined by 95 bps since the Fed first cut its Fed funds target rate by 50 bps on Sept. 18, 2024, and they'​ve declined by 52 bps since the Fed cut rates by 1/​4 point on 11/​7. Yields were 4.​14% on 3/​31/​25, 4.​16% on 2/​28/​25, 4.​19% on 1/​31/​25, 4.​28% on average on 12/​31/​24, 4.​45% on 11/​30/​24, 4.​65% on 10/​31, 4.​75% on 9/​30, 5.​10% on 8/​31, 5.​13% on 7/​31 and 6/​28, 5.​14% on 3/​31 and 5.​20% on 12/​31/​23. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (​currently 682), shows a 7-​day yield of 4.​01%, down two bps in the week through Friday. Prime Inst money fund yields were down 1 bp at 4.​25% in the latest week. Government Inst MFs were down 2 bps to 4.​12%. Treasury Inst MFs were down 2 bps at 4.​06%. Treasury Retail MFs currently yield 3.​83%, Government Retail MFs yield 3.​82%, and Prime Retail MFs yield 4.​01%, Tax-​exempt MF 7-​day yields were down 67 bps to 1.​98%. Assets of money market funds fell by $​3.​4 billion last week to $​7.​309 trillion, according to Crane Data'​s Money Fund Intelligence Daily. For the month of May (​MTD), MMF assets have increased by $​9.​9 billion, after decreasing $​24.​4 billion in April, increasing by $​2.​8 billion in March, $​94.​2 billion in February, $​52.​8 billion in January, $​110.​9 billion in December, $​200.​5 billion in November, $​97.​5 billion in October and $​149.​8 billion in September. Weighted average maturities were at 36 days for the Crane MFA and 36 days the Crane 100 Money Fund Index. According to Monday'​s Money Fund Intelligence Daily, with data as of Friday (​5/​9), 116 money funds (​out of 794 total) yield under 3.​0% with $​148.​4 billion in assets, or 2.​0%; 250 funds yield between 3.​00% and 3.​99% ($​1.​305 trillion, or 17.​9%), 428 funds yield between 4.​0% and 4.​99% ($​5.​856 trillion, or 80.​1%) and following the recent rate cut there continue to be zero funds yielding 5.​0% or more. Our Brokerage Sweep Intelligence Index, an average of FDIC-​insured cash options from major brokerages, was unchanged at 0.​41%. The latest Brokerage Sweep Intelligence, with data as of May 9, shows no changes over the past week. Three of the 10 major brokerages tracked by our BSI still offer rates of 0.​01% for balances of $​100K (​and lower tiers). These include: E*​Trade, Merrill Lynch and Morgan Stanley.

The Federal Reserve Bank of New York'​s Roberto Perli gave a speech Friday titled, "Recent Developments in Treasury Market Liquidity and Funding Conditions," which "​examines a rich set of topics that are core to monetary policy implementation, such as the quantity of reserves, demand elasticities of different investors in the Treasury cash and repo markets, the convenience yield of Treasury securities, and much more." He comments, "​I will start by reviewing recent developments in Treasury market liquidity, something that I and my colleagues on the Federal Reserve'​s Open Market Desk (​the Desk) monitor closely. Well-​functioning Treasury cash and repo markets are of course essential for the effective transmission and implementation of monetary policy. A key point that I would like to emphasize is that, although liquidity in Treasury cash markets became strained in early April, those markets continued to function, in part because of the resilience of funding liquidity in the Treasury repo market. That resilience, even amid heightened yield volatility, likely prevented the unwind of certain shorter-​term relative value trades, which would have exacerbated market dislocations. And funding liquidity resilience was likely helped by the robust rate control framework that the Federal Reserve has put in place. Finally, I will conclude with some thoughts on how implementation tools, such as the Standing Repo Facility (​SRF), can be refined to further strengthen the implementation framework and the resilience of Treasury funding liquidity." Perli adds, "To conclude, the good functioning of the Treasury market is essential for the smooth implementation and transmission of monetary policy, and thanks in part to the resilience of funding liquidity, the Treasury market has continued to function well even amid a deterioration of liquidity conditions. At the same time, thinking of ways of appropriately enhancing the effectiveness of Fed facilities is at the core of our mission. The high-​quality research that will be presented at this conference, geared toward a better understanding of Treasury repo and cash market functioning, is extremely helpful to us. It is my hope that my remarks provided some food for thought and encourage more research on these topics."

ICI published its latest weekly "Money Market Fund Assets" report Thursday. The weekly series shows money fund assets rising $​37.​6 billion to $​6.​946 trillion, after falling $​4.​1 billion the week prior and rising $​31.​7 billion two weeks ago. Three weeks prior assets fell $​125.​4 billion (these massive tax outflows were the largest weekly outflow in history). Money fund assets have risen in 26 of the last 40, and 37 of the last 55 weeks, increasing by $​642.​5 billion (​or 10.​2%) since the Fed cut on 9/​18/​24 and increasing by $​968.​5 billion (​or 16.​2%) since 4/​24/​24. MMF assets are up by $​914 billion, or 15.​2%, in the past 52 weeks (​through 5/​7/​25), with Institutional MMFs up $​462 billion, or 12.​9% and Retail MMFs up $​452 billion, or 18.​7%. Year-​to-​date, MMF assets are still up by $​96 billion, or 1.​4%, with Institutional MMFs down $​42 billion, or -​1.​0% and Retail MMFs up $​137 billion, or 5.​0%. ICI'​s weekly release says, "Total money market fund assets increased by $​37.​57 billion to $​6.​95 trillion for the week ended Wednesday, May 7.... Among taxable money market funds, government funds increased by $​24.​69 billion and prime funds increased by $​11.​36 billion. Tax-​exempt money market funds increased by $​1.​51 billion." ICI'​s stats show Institutional MMFs increasing $​15.​1 billion and Retail MMFs increasing $​22.​5 billion in the latest week. Total Government MMF assets, including Treasury funds, were $​5.​662 trillion (​81.​5% of all money funds), while Total Prime MMFs were $​1.​142 trillion (​16.​4%). Tax Exempt MMFs totaled $​142.​1 billion (​2.​0%). It explains, "Assets of retail money market funds increased by $​22.​45 billion to $​2.​87 trillion. Among retail funds, government money market fund assets increased by $​12.​92 billion to $​1.​81 trillion, prime money market fund assets increased by $​8.​55 billion to $​929.​39 billion, and tax-​exempt fund assets increased by $​984 million to $​129.​55 billion." Retail assets account for well over a third of total assets, or 41.​4%, and Government Retail assets make up 63.​1% of all Retail MMFs. They add, "Assets of institutional money market funds increased by $​15.​12 billion to $​4.​07 trillion. Among institutional funds, government money market fund assets increased by $​11.​77 billion to $​3.​85 trillion, prime money market fund assets increased by $​2.​81 billion to $​213.​04 billion, and tax-​exempt fund assets increased by $​530 million to $​12.​52 billion." Institutional assets accounted for 58.​6% of all MMF assets, with Government Institutional assets making up 94.​5% of all institutional MMF totals. According to Crane Data'​s separate Money Fund Intelligence Daily series, money fund assets have increased by $​17.​5 billion in May (​through 5/​7/​25) to $​7.​317 trillion, last month assets hit a record high of $​7.​384 trillion on April 3. Assets fell by $​24.​4 billion in April, they rose $​2.​8 trillion in March, $​94.​2 billion in February, $​52.​8 billion in January, $​110.​9 billion in December, $​200.​5 trillion in November, $​97.​5 billion in October, $​149.​8 billion in September, $​109.​7 billion in August, $​16.​6 billion in July, $​15.​7 billion in June and $​91.​4 billion in May. They declined by $​15.​8 billion in April 2024. Note that ICI'​s asset totals don'​t include a number of funds tracked by the SEC and Crane Data, so they'​re over $​330 billion lower than Crane'​s asset series.

ICI Chief Economist Shelly Antoniewicz posted a response to the recent Wall Street Journal column, "Your Money-​​Market Fund Is Ripping You Off." Her LinkedIn Post says, "Some recent media reports are trying to make the claim that money market funds (​MMFs) are a bad deal for investors, accusing them of overcharging investors -- a '​king'​s ransom' as one reporter describes it. But such reports do not hold water. First, for years, when interest rates were low, most MMFs waived their fees to protect investor returns. In 2021, for example, 97% of MMF managers offered fee waivers, allowing retail investors to earn some yield despite near-​zero rates. In other words, for several years managers charged a fee of 0% -- nothing -- and instead absorbed the costs on behalf of investors. Given this fact, it is unconscionable for the press to claim that investors are getting '​ripped-​off' on their money market funds." Antoniewicz writes, "Second, now that rates have risen and stayed higher, those waivers are being phased out -- returning MMFs to normal operations. These reports would like readers to think these normal operations represent an unreasonable level of fees. But the fact is that annual expense ratios of MMFs have declined over the last 20 years and are less than expense ratios for other mutual funds. For some reason, the press wishes to play down these numbers." She adds, "Third, let'​s not forget that the primary reason investors are moving their money into MMFs is that MMFs offer superior returns. As of April 2025, government MMFs offered an average net yield of 4.​10%, much higher than the measly 0.​62% for money market deposit accounts in banks. We should celebrate, not denigrate, the ability of MMFs to offer investors such good value. Bottom line: MMFs offer liquidity, stability, and low cost, competitive returns. They remain strong value for investors."

Crane Data published its latest Weekly Money Fund Portfolio Holdings statistics Tuesday, which track a shifting subset of our monthly Portfolio Holdings collection. The most recent cut (​with data as of May 2) includes Holdings information from 62 money funds (​down 11 from a week ago), or $​3.​633 trillion (​down from $​3.​968 trillion) of the $​7.​313 trillion in total money fund assets (​or 49.​7%) tracked by Crane Data. (Note: Our Weekly MFPH are e-​mail only and aren'​t available on the website. See our latest Monthly Money Fund Portfolio Holdings here and our April 10 News, "April Money Fund Portfolio Holdings: Repo Surges, Treasuries Plummet.") Our latest Weekly MFPH Composition summary shows Government assets dominating the holdings list with Treasuries totaling $​1.​626 trillion (​down from $​1.​759 trillion a week ago), or 44.​8%; Repurchase Agreements (​Repo) totaling $​1.​341 trillion (​down from $​1.​436 trillion a week ago), or 36.​9%, and Government Agency securities totaling $​330.​2 billion (​down from $​357.​8 billion), or 9.​1%. Commercial Paper (​CP) totaled $​133.​7 billion (​down from a week ago at $​169.​2 billion), or 3.​7%. Certificates of Deposit (​CDs) totaled $​82.​3 billion (​down from $​95.​0 billion a week ago), or 2.​3%. The Other category accounted for $​81.​3 billion or 2.​2%, while VRDNs accounted for $​38.​2 billion, or 1.​1%. The Ten Largest Issuers in our Weekly Holdings product include: the US Treasury with $​1.​626 trillion (​44.​8% of total holdings), Fixed Income Clearing Corp with $​433.​7B (​11.​9%), the Federal Home Loan Bank with $​210.​2 billion (​5.​8%), JP Morgan with $​122.​1B (​3.​4%), BNP Paribas with $​83.​1B (​2.​3%), Citi with $​82.​8B (​2.​3%), Federal Farm Credit Bank with $​80.​9B (​2.​2%), RBC with $​65.​6B (​1.​8%), Bank of America with $​55.​1B (​1.​5%) and Wells Fargo with $​49.​7B (​1.​4%). The Ten Largest Funds tracked in our latest Weekly include: JPMorgan US Govt MM ($​283.​5B), Goldman Sachs FS Govt ($​258.​4B), JPMorgan 100% US Treas MMkt ($​245.​4B), Fidelity Inv MM: Govt Port ($​227.​6B), BlackRock Lq FedFund ($​170.​4B), Morgan Stanley Inst Liq Govt ($​169.​9B), BlackRock Lq Treas Tr ($​157.​6B), State Street Inst US Govt ($​151.​5B), Fidelity Inv MM: MM Port ($​151.​0B) and Dreyfus Govt Cash Mgmt ($​128.​2B). (​Let us know if you'​d like to see our latest domestic U.​S. and/​or "​offshore" Weekly Portfolio Holdings collection and summary.)

Money fund yields (​7-​day, annualized, simple, net) rose 2 bps to 4.​14% on average during the week ended Friday, May 2 (​as measured by our Crane 100 Money Fund Index), after falling 1 bp the previ-​ous two weeks. Fund yields should remain relatively flat until the Fed moves rates again. They'​ve de-​clined by 92 bps since the Fed first cut its Fed funds target rate by 50 bps on Sept. 18, 2024, and they'​ve declined by 49 bps since the Fed cut rates by 1/​4 point on 11/​7. Yields were 4.​14% on 3/​31/​25, 4.​16% on 2/​28/​25, 4.​19% on 1/​31/​25, 4.​28% on average on 12/​31/​24, 4.​45% on 11/​30/​24, 4.​65% on 10/​31, 4.​75% on 9/​30, 5.​10% on 8/​31, 5.​13% on 7/​31 and 6/​28, 5.​14% on 3/​31 and 5.​20% on 12/​31/​23. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (​currently 684), shows a 7-​day yield of 4.​03%, up one bp in the week through Friday. Prime Inst money fund yields were unchanged at 4.​26% in the latest week. Government Inst MFs were up 2 bps to 4.​14%. Treasury Inst MFs were up 1 bp at 4.​08%. Treasury Retail MFs currently yield 3.​84%, Government Retail MFs yield 3.​85%, and Prime Retail MFs yield 4.​04%, Tax-​exempt MF 7-​day yields were down 64 bps to 2.​65%. Assets of money market funds rose by $​24.​1 billion last week to $​7.​313 trillion, according to Crane Data'​s Money Fund Intelligence Daily. For the month of May (​MTD), MMF assets have increased by $​13.​3 billion, after decreasing $​24.​4 billion in April, increasing by $​2.​8 billion in March, $​94.​2 billion in Febru-​ary, $​52.​8 billion in January, $​110.​9 billion in December, $​200.​5 billion in November, $​97.​5 billion in October and $​149.​8 billion in September. Weighted average maturities were at 35 days for the Crane MFA and 35 days the Crane 100 Money Fund Index. According to Monday'​s Money Fund Intelligence Daily, with data as of Friday (​5/​2), 104 money funds (​out of 796 total) yield under 3.​0% with $​120.​5 billion in assets, or 1.​6%; 246 funds yield between 3.​00% and 3.​99% ($​1.​329 trillion, or 18.​2%), 446 funds yield between 4.​0% and 4.​99% ($​5.​863 trillion, or 80.​2%) and following the recent rate cut there continue to be zero funds yielding 5.​0% or more. Our Brokerage Sweep Intelligence Index, an average of FDIC-​insured cash options from major brokerages, was unchanged at 0.​41%. The latest Brokerage Sweep Intelligence, with data as of May 2, shows no changes over the past week. Three of the 10 major brokerages tracked by our BSI still offer rates of 0.​01% for balances of $​100K (​and lower tiers). These include: E*​Trade, Merrill Lynch and Morgan Stanley.

The Wall Street Journal'​s Jason Zweig claims, "Your Money-​Market Fund Is Ripping You Off." He writes, "Cash is king. If only you didn'​t have to pay a king’​s ransom to hold it. Ever since President Trump'​s tariff bombshells went off on April 2, cash has reasserted itself as a valuable shelter for investors. Money-​market mutual funds -- the most convenient form of cash for most investors -- have stayed stable while providing steady income that has cushioned the damage in other markets. Yet money-​market funds are surprisingly expensive, and a recent attempt to make them cheaper has been stymied. If you'​re like most investors, you probably pay close attention to your stock and bond funds, and little if any to your cash. But you'​re probably getting ripped off on your money-​market funds -- and it'​s one of the biggest heists on Wall Street." The piece comments, "​That stunning decline in costs has barely touched money-​market funds. Since 2015, taxable and tax-​free money-​market mutual funds have grown by more than 150%, to $​6.​91 trillion from $​2.​75 trillion, according to the Investment Company Institute. Over the same period, stock mutual funds (​including international and balanced portfolios) grew less than 70%, to $​16 trillion from $​9.​48 trillion. Yet the average expense ratio at U.​S. stock mutual funds fell to 0.​33% annually from 0.​54%, according to Morningstar -- a 39% decline. Meanwhile, annual expenses at money funds rose slightly to 0.​21% from 0.​19% -- even though their assets boomed. (​All these figures are weighted by the size of the funds.)" The Journal column adds, "​Fund investors are supposed to benefit from economies of scale, since fixed costs get spread over much larger pools of assets. `​Why hasn'​t that happened with money-​market funds? Blame big brokers that are gouging you on cash. For most of the period between 2008 and 2021, the Federal Reserve kept short-​term interest rates so low that money funds would have yielded less than zero after expenses. So the managers waived more than $​50 billion in fees. With short-​term rates back above 4%, $​1 trillion has poured into money funds over the past year and fund companies can charge full freight again. The managers are '​rolling in money now,' says Peter Crane, president of Crane Data, a firm that tracks cash accounts, '​but they don'​t want to hear about cutting expenses because they just spent 10 years waiving fees.' Also, nobody had tried running a money-​market fund as an ETF. So the mutual funds faced no competition from dirt-​cheap ETFs. `​Only last September did Dallas-​based Texas Capital Bank Private Wealth Advisors succeed in launching the first money-​market ETF. It quickly grew to $​40 million, thanks to low fees and high yields. BlackRock'​s iShares followed this February with two money-​market ETFs of its own."

ICI published its latest weekly "Money Market Fund Assets" report Thursday. The weekly series shows money fund assets falling $​4.​1 billion to $​6.​908 trillion, after rising $​31.​7 billion the week prior and falling $​125.​4 billion two weeks ago (these massive tax outflows were the largest weekly outflow in history). Money fund assets have still risen in 25 of the last 39, and 36 of the last 54 weeks, increasing by $​604.​9 billion (​or 9.​6%) since the Fed cut on 9/​18/​24 and increasing by $​931.​0 billion (​or 15.​6%) since 4/​24/​24. MMF assets are up by $​907 billion, or 15.​1%, in the past 52 weeks (​through 4/​30/​25), with Institutional MMFs up $​470 billion, or 13.​1% and Retail MMFs up $​437 billion, or 18.​1%. Year-​to-​date, MMF assets are still up by $​58 billion, or 0.​8%, with Institutional MMFs down $​57 billion, or -​1.​4% and Retail MMFs up $​115 billion, or 4.​2%. ICI'​s weekly release says, "Total money market fund assets decreased by $​4.​12 billion to $​6.​91 trillion for the week ended Wednesday, April 30.... Among taxable money market funds, government funds decreased by $​6.​11 billion and prime funds decreased by $​1.​55 billion. Tax-​exempt money market funds increased by $​3.​54 billion." ICI'​s stats show Institutional MMFs decreasing $​0.​2 billion and Retail MMFs decreasing $​3.​9 billion in the latest week. Total Government MMF assets, including Treasury funds, were $​5.​637 trillion (​81.​6% of all money funds), while Total Prime MMFs were $​1.​131 trillion (​16.​4%). Tax Exempt MMFs totaled $​140.​6 billion (​2.​0%). It explains, "Assets of retail money market funds decreased by $​3.​92 billion to $​2.​85 trillion. Among retail funds, government money market fund assets decreased by $​7.​90 billion to $​1.​80 trillion, prime money market fund assets increased by $​732 million to $​920.​84 billion, and tax-​exempt fund assets increased by $​3.​24 billion to $​128.​57 billion." Retail assets account for well over a third of total assets, or 41.​3%, and Government Retail assets make up 63.​2% of all Retail MMFs. They add, "Assets of institutional money market funds decreased by $​194 million to $​4.​06 trillion. Among institutional funds, government money market fund assets increased by $​1.​79 billion to $​3.​84 trillion, prime money market fund assets decreased by $​2.​28 billion to $​210.​22 billion, and tax-​exempt fund assets increased by $​299 million to $​11.​99 billion." Institutional assets accounted for 58.​7% of all MMF assets, with Government Institutional assets making up 94.​5% of all institutional MMF totals. According to Crane Data'​s separate Money Fund Intelligence Daily series, money fund assets have fallen by $​24.​4 billion in April (​through 4/​30/​25) to $​7.​299 trillion, hitting a record high of $​7.​384 trillion on April 3. Assets rose by $​2.​8 trillion in March, $​94.​2 billion in February, $​52.​8 billion in January, $​110.​9 billion in December, $​200.​5 trillion in November, $​97.​5 billion in October, $​149.​8 billion in September, $​109.​7 billion in August, $​16.​6 billion in July, $​15.​7 billion in June and $​91.​4 billion in May. They declined by $​15.​8 billion in April 2024. Note that ICI'​s asset totals don'​t include a number of funds tracked by the SEC and Crane Data, so they'​re over $​330 billion lower than Crane'​s asset series.

A website CryptoSlate posted an article titled, "BlackRock unveils blockchain-​enabled shares for $​150B money market fund." It says, "BlackRock, the world'​s largest asset manager, has made additional moves to incorporate blockchain technology into its traditional finance operations. According to an April 28 filing with the US Securities and Exchange Commission (​SEC), the firm seeks approval to introduce a blockchain-​enabled share class, referred to as '​DLT Shares,' tied to its $​150 billion [​BlackRock Liquidity Funds: Treasury Trust] money market fund." According to the filing, The Bank of New York Mellon (​BNY Mellon) will manage the sale of these shares and maintain a mirrored record of ownership using blockchain technology." The filing states, "DLT Shares may also be purchased by BlackRock Advisors, LLC or its affiliates. Although the Fund does not currently employ blockchain technology or invest in crypto assets, DLT Shares are expected to be purchased and held through BNY, which intends to use blockchain technology to maintain a mirror record of share ownership for its customers." The CryptoSlate piece continues, "Meanwhile, the minimum investment for this new share class is $​3 million. The fund will allocate its assets across US Treasury securities, including bills, notes, and similar obligations. It will focus on short-​term investments, maintaining a dollar-​weighted average maturity of no more than 60 days and an average life of under 120 days." It adds, "BlackRock'​s latest move reflects its increasing interest in blockchain technology, especially following the success of its Bitcoin and Ethereum exchange-​traded funds (​ETFs) and BUIDL fund. Notably, BlackRock is already utilizing these ideas through its blockchain-​native BUIDL fund, which was launched in partnership with Securitize in 2024. The fund manages over $​2.​5 billion in tokenized assets and has expanded operations to several blockchain networks, including Solana, Avalanche, and Ethereum layer-​2 networks like Optimism."

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