Daily Links Archives: July, 2025
Aviva Changes Euro MMF to LVNAV
Aviva Investors, the 13th largest manager of European or "offshore" money market funds with $41.8 billion (when translated back into USD), announced a series of changes to their Ireland-based funds. The update, titled, "You asked -- we listened," says, "We've listened carefully and are pleased to share the changes we're making in response to your input. Based on your recent feedback, we've made a series of enhancements to improve operational efficiency, increase flexibility, and better align with your accounting and payment needs. These changes are designed to support your day-to-day liquidity management -- whether that's through more stable pricing, earlier redemption payments, or extended dealing deadlines." Aviva's brief explains, "What you said: The Euro Liquidity Fund needs to be LVNAV to support stable pricing for accounting purposes; EUR redemption payments are released too late in the day; GBP payments for the Sterling Government Fund are also released too late; Could the Euro Liquidity Fund cut-off be extended?" It continues, "What we've changed: From 7th July 2025, the Euro Liquidity Fund will be LVNAV, with distributing share classes priced at 1.000; From 7th July 2025, both the Sterling Government Liquidity Fund and the Euro Liquidity Fund will adopt historic pricing for distributing share classes -- enabling redemption payments as early as 9:30am Irish time, in line with our other Liquidity Funds; From 7th July 2025, the cut-off for the Euro Liquidity Fund will be extended to 1:00pm Irish time." Aviva adds, "We hope these enhancements make a meaningful difference to your operations. If you have any questions or further suggestions, we'd love to hear from you. We're committed to making our Liquidity Funds work better for you." (Note: For more information on European MMFs, ask us to see our latest MFI International publication or MFII Portfolio Holdings, or join us for our European Money Fund Symposium, which is Sept. 22-23 in Dublin, Ireland.)
Crane 100 Index Up to 4.13%
Money fund yields (7-day, annualized, simple, net) increased 1 bp to 4.13% on average during the week ended Thursday, July 3 (as measured by our Crane 100 Money Fund Index), after rising 2 bps the week prior. Fund yields should stay relatively flat until the Fed moves rates again later this year. They've declined by 93 bps since the Fed first cut its Fed funds target rate by 50 bps on Sept. 18, 2024, and they've declined by 50 bps since the Fed last cut rates by 1/4 point on 11/7/24. Yields were 4.10% on 5/31, 4.13% on 4/30/25, 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 674), shows a 7-day yield of 4.02%, up 1 bp in the week through Thursday. Prime Inst money fund yields were unchanged at 4.26% in the latest week. Government Inst MFs were up 2 bps at 4.14%. Treasury Inst MFs were unchanged at 4.06%. Treasury Retail MFs currently yield 3.82%, Government Retail MFs yield 3.84%, and Prime Retail MFs yield 4.03%, Tax-exempt MF 7-day yields were down 50 bps to 1.88%. Assets of money market funds rose by $17.4 billion last week to $7.421 trillion, according to Crane Data's Money Fund Intelligence Daily. MMF assets hit a record high of $7.463 trillion (on July 1) after their previous high of $7.407 trillion set on June 30. For the month of July (MTD), MMF assets have increased $14.5 billion after increasing by $6.7 billion in June, $100.9 billion in May, 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 39 days for the Crane MFA and 39 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Thursday (7/3), 116 money funds (out of 786 total) yield under 3.0% with $144.2 billion in assets, or 1.9%; 239 funds yield between 3.00% and 3.99% ($871.8 billion, or 11.7%), 431 funds yield between 4.0% and 4.99% ($6.405 trillion, or 86.3%) 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 0.40%, after falling 1 bp seven weeks prior. The latest Brokerage Sweep Intelligence, with data as of July 3, 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.
Reuters: JPM Cuts Stablecoin Growth
Reuters says, "J.P.Morgan wary of stablecoin's trillion-dollar growth bets, cuts them by half." The article tells us, "J.P.Morgan on Thursday forecast stablecoin growth will only reach $500 billion by 2028, calling trillion-dollar projections 'far too optimistic', as there was little evidence of mainstream adoption of the dollar-pegged cryptocurrency token. Stablecoins have moved beyond their crypto trading roots to attract interest from fintechs and banks aiming to speed up payments and settlements, drawing attention from U.S. lawmakers, who last month passed the GENIUS Act in the Senate -- a step analysts said could bring long-awaited regulatory clarity." It explains, "Before the Senate passed the stablecoin bill, Standard Chartered projected the market could reach $2 trillion by 2028, while Bernstein forecast in a June 30 note that supply would grow to about $4 trillion over the next decade. But J.P.Morgan said payments adoption of stablecoins remains minimal, accounting for just 6% of demand, or about $15 billion. It estimated the stablecoin market at $250 billion, with most usage concentrated in crypto trading, decentralized finance and collateral. 'The idea that stablecoins will replace traditional money for everyday use is still far from reality,' the brokerage said." Reuters adds, "In June, the head of China's central bank pledged to expand the international use of the digital yuan or e-CNY. Ant Group, an affiliate of e-commerce giant Alibaba, said it plans to apply for a license to issue stablecoins in Hong Kong through its overseas arm Ant International, which operates mobile payment app Alipay. 'Neither the rapid expansion of e-CNY nor the success of Alipay and WeChat Pay represent templates for stablecoin expansion in the future,' J.P.Morgan said."
S&P Says NY CLASS 'AAAm' Affirmed
S&P Global Ratings published, "NY CLASS 'AAAm' Principal Stability Fund Rating Affirmed; New York Liquid Asset Fund – Max Portfolio Rating Withdrawn." It states, "S&P Global Ratings today affirmed its 'AAAm' principal stability fund rating (PSFR) on the New York Cooperative Liquid Assets Securities System (NY CLASS) and subsequently withdrew the 'AAAm' PSFR on New York Liquid Asset Fund – Max Portfolio. Our affirmation follows the announcement that NY CLASS, a fund managed by Public Trust Advisors LLC, will acquire the assets of New York Liquid Asset Fund – Max Portfolio, a fund managed by PMA Cos. There are no changes to the investment strategy, and NY CLASS will maintain its existing operating framework. The 'AAAm' rating is the highest PSFR we assign and indicates an extremely strong capacity to maintain principal stability and to limit exposure to principal losses caused by credit risk." They write, "In our view, the fund achieves this through conservative investment practices and strict internal controls. NY CLASS is a short-term, highly liquid investment fund, designed specifically for the public sector. NY CLASS provides the opportunity to invest funds on a cooperative basis in short-term investments that strive to prioritize safety, liquidity, and yield. NY CLASS invests cooperative funds only in securities that are legal for public funds investments in New York. The fund seeks to maintain a stable value of $1.00 per share." S&P adds, "Denver-based Public Trust Advisors LLC is the investment adviser and administrator for the fund. In November 2024, S&P Global Ratings affirmed the rating on NY CLASS and 28 other local government investment pools managed by PMA and Public Trust. This affirmation followed the announcement that PMA and Public Trust were combining to create a new financial services company backed by Flexpoint Ford and TA Associates. The combined company, PTMA Financial Solutions, works with clients across 26 states to provide customized financial solutions to over 12,000 local governments and public entities." S&P also posted, "Nebraska Public Agency Investment Trust Portfolio 'AAAm' Principal Stability Fund Rating Affirmed," which says, "S&P Global Ratings today affirmed its 'AAAm' principal stability fund rating (PSFR) on the Nebraska Public Agency Investment Trust (NPAIT). Our affirmation follows the announcement that PMA Cos. managed fund, NPAIT, will acquire the assets of Public Trust Advisors LLC managed fund, Nebraska Cooperative Liquid Assets Securities System.... NPAIT is a local government investment pool established by Nebraska public entities seeking to invest funds jointly through a safe, efficient investment program. Designed and governed by public entities, NPAIT is managed with guiding principles focused on public entities and the communities they serve." For more news on LGIPs, see these Crane Data News stories: "S&P Global Ratings on Domestic and European MM Funds, LGIPs, in Q1'25" (5/16/25), "PFII Discusses LGIPs in Texas" (4/17/25), "ICI: Assets Fall to $6.914 Trillion; JPMorgan on Holdings; Fitch on LGIPs" (2/21/25), and "S&P Global Ratings on U.S., European Money Fund Trends in Q4'24; LGIPs" (2/5/25).
Weekly Money Fund Portfolio Holdings
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 June 27) includes Holdings information from 73 money funds (up 12 from two weeks ago), or $4.069 trillion (up from $3.535 trillion) of the $7.405 trillion in total money fund assets (or 54.9%) 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 June 11 News, "June Money Fund Portfolio Holdings: Repo Jumps to 40%, T-Bills Flat.") Our latest Weekly MFPH Composition summary shows Government assets dominating the holdings list with Treasuries totaling $1.691 trillion (up from $1.491 trillion two weeks ago), or 41.6%; Repurchase Agreements (Repo) totaling $1.598 trillion (up from $1.368 trillion two weeks ago), or 39.3%, and Government Agency securities totaling $371.6 billion (up from $331.9 billion), or 9.1%. Commercial Paper (CP) totaled $171.8 billion (up from two weeks ago at $143.4 billion), or 4.2%. Certificates of Deposit (CDs) totaled $104.6 billion (up from $79.5 billion two weeks ago), or 2.6%. The Other category accounted for $79.1 billion or 1.9%, while VRDNs accounted for $53.3 billion, or 1.3%. The Ten Largest Issuers in our Weekly Holdings product include: the US Treasury with $1.691 trillion (41.6% of total holdings), Fixed Income Clearing Corp with $540.3B (13.3%), the Federal Home Loan Bank with $233.8 billion (5.7%), JP Morgan with $128.5B (3.2%), RBC with $109.4B (2.7%), BNP Paribas with $93.8B (2.3%), Federal Farm Credit Bank with $93.8B (2.3%), Citi with $92.5B (2.3%), Wells Fargo with $73.7B (1.8%) and the Federal Reserve Bank of New York with $65.5B (1.6%). The Ten Largest Funds tracked in our latest Weekly include: JPMorgan US Govt MM ($286.0B), JPMorgan 100% US Treas MMkt ($248.9B), Goldman Sachs FS Govt ($245.3B), Fidelity Inv MM: Govt Port ($244.5B), BlackRock Lq FedFund ($177.9B), Federated Hermes Govt ObI ($168.1B), Morgan Stanley Inst Liq Govt ($159.0B), Fidelity Inv MM: MM Port ($156.4B), State Street Inst US Govt ($155.9B) and BlackRock Lq Treas Tr ($155.6B). (Let us know if you'd like to see our latest domestic U.S. and/or "offshore" Weekly Portfolio Holdings collection and summary.)
Crane 100 Index Up to 4.12%
Money fund yields (7-day, annualized, simple, net) increased 2 bps to 4.12% on average during the week ended Friday, June 27 (as measured by our Crane 100 Money Fund Index), after remaining unchanged the previous two weeks. Fund yields should stay relatively flat until the Fed moves rates again later this year. They've declined by 94 bps since the Fed first cut its Fed funds target rate by 50 bps on Sept. 18, 2024, and they've declined by 51 bps since the Fed last cut rates by 1/4 point on 11/7/24. Yields were 4.10% on 5/31, 4.13% on 4/30/25, 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 674), shows a 7-day yield of 4.01%, up 1 bp in the week through Friday. Prime Inst money fund yields were up 1 bp at 4.26% in the latest week. Government Inst MFs were up 2 bps at 4.12%. Treasury Inst MFs were up 1 bp at 4.06%. Treasury Retail MFs currently yield 3.82%, Government Retail MFs yield 3.83%, and Prime Retail MFs yield 4.02%, Tax-exempt MF 7-day yields were down 41 bps to 2.29%. As-sets of money market funds rose by $38.0 billion last week to $7.405 trillion, according to Crane Data's Money Fund Intelligence Daily. Four weeks prior MMF assets hit a record high of $7.406 tril-lion (on June 3) after their previous high of $7.400 trillion set on May 30. For the month of June (MTD), MMF assets have increased $4.9 billion after increasing by $100.9 billion in May, 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 38 days for the Crane MFA and 38 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (6/27), 116 money funds (out of 786 total) yield under 3.0% with $144.9 billion in assets, or 2.0%; 247 funds yield be-tween 3.00% and 3.99% ($1.292 trillion, or 17.5%), 423 funds yield between 4.0% and 4.99% ($5.968 tril-lion, or 80.6%) 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 0.40%, after falling 1 bp six weeks prior. The latest Brokerage Sweep Intelligence, with data as of June 27, 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 in-clude: E*Trade, Merrill Lynch and Morgan Stanley.
