News Archives: June, 2026
The Association for Financial Professionals, a group representing corporate treasurers, published its "2026 AFP Liquidity Survey" last week. (See AFP's press release, "AFP Survey Finds Stablecoins Remain Peripheral to Liquidity Strategies as Cash Reserves Rise.) The cover letter says, "Invesco is once again proud to partner with the Association for Financial Professionals (AFP) to sponsor the 21st annual AFP Liquidity Survey Report. This marks the seventh year that Invesco has sponsored this industry-leading exploration into current and emerging corporate cash management trends." Invesco's Laurie Brignac explains, "As highlighted in this year's AFP Survey, the global economy faced numerous challenges and uncertainty from Liberation Day tariffs to continued, and new, geopolitical conflicts." (Note too: For those attending Money Fund Symposium later this week (June 24-26) in Jersey City, we look forward to seeing you! Attendees and Subscribers may access the conference materials via our "Money Fund Symposium 2026 Download Center.")
AFP's Introduction tells us, "To understand current and emerging trends in organizations' cash and short-term investment holdings, investment policies and strategies in the current economic environment, the Association for Financial Professionals (AFP) conducted its 21st annual AFP Liquidity Survey in March 2026. The survey generated 309 responses, which are the basis of this report. Results from this survey will provide treasury and finance professionals with critical benchmarks on short-term investment holdings and strategies."
Discussing "Change in Cash and Short-Term Balances Over the Past 12 Months: U.S. and Non-U.S. Cash Holdings," the AFP says, "Forty-six percent of corporate practitioners report an increase in their organizations' cash holdings within the U.S. in the past 12 months (through March 2026) -- 8 percentage points higher than the 38% reported in the 2025 AFP Liquidity Survey Report. The share of those respondents reporting a decrease in their companies' cash holdings within the U.S decreased by two percentage points -- from 16% in last year's survey to 14% in the current survey. These findings suggest organizations are holding onto their cash balances at a higher rate compared to last year. Forty percent of respondents report that there was no significant change in their companies' cash and short-term balances within the U.S. over the past 12 months, lower than the 46% reported last year."
They write, "The distribution of organizations' cash and short-term balances outside the U.S. closely resembles the result in last year's survey. Sixty-two percent of respondents indicate that in the past 12 months their organizations' investments outside the U.S. were unchanged -- slightly lower than the 65% reported last year. Twenty percent report an increase in cash and short-term balances, similar to last year's finding, while 18% of organizations decreased cash and short-term balances outside the U.S., higher than the 15% in last year's report."
AFP's report continues, "Within the U.S., survey results suggest the rate of holding onto cash balances is higher than last year. This could be a result of the current uncertainty in the economic environment due to the geopolitical tensions with Iran that had recently begun at the time this survey was in the field. Only 20% of organizations with investments outside the U.S. utilized offshore deposits to increase yield for cash investments."
The survey tells us, "Changes in cash holdings are driven by various factors. Seventy-nine percent of respondents report that increased operating cash flow has had either a significant impact or some impact on the increase in their organizations' cash holdings in the past 12 months -- a 5-percentage-point increase from the 74% in last year's survey. Other drivers contributing to increased cash holdings at organizations include domestic political/regulatory risks (e.g., U.S. trade policy) -- cited by 49% of respondents, increased debt outstanding/accessed best markets/securitization/factoring/supply-chain finance and global geopolitical risks (each cited by 48% of respondents). Businesses are also building cash due to tariffs imposed on trading partners as noted by 35% of organizations."
It continues, "Over the past year, tariff policies have been unclear. Negotiations aimed to lower tariffs imposed on 'Liberation Day;' this was followed a Supreme Court ruling stating that the International Emergency Powers Act (IEEPA) does not allow the president to impose tariffs on imports. In response, President Trump added a temporary three-month tariff. As a result, businesses are uncertain about their financial impact and are increasing cash reserves as a precaution and lowering expenses."
The survey continues, "Fifty-eight percent of survey respondents indicate that inflation has significantly or somewhat decreased their organizations' cash holdings over the past year, identical to last year's result. Inflationary pressures continue, worsened by Middle East tensions and rising oil prices. Equally, 58% of respondents report increased capital expenditures as a factor in lower cash holdings. Other reasons cited include reduced operating cash flow (49%) and debt repayment (47%)."
AFP writes, "Over 40% of respondents believe U.S. trade policy and tariffs will also affect their organization's cash reserves, reflecting ongoing uncertainty about their impact. Several factors have contributed to the decrease in cash holdings, including foreign exchange fluctuations and the need for upfront cash flow when launching new businesses. Additionally, timing mismatches in cash flows, rising labor costs, and higher interest rates have posed further challenges."
A section titled, "Stablecoin and Tokenized Products," tells us, "Over one-third of respondents are unfamiliar regarding the status of stablecoin/tokenized utilization at their organizations, while 55% are aware but not exploring case use. Only 1% are conducting pilots using stablecoins or tokenized funds, while the remaining 9% are in the process of actively exploring use cases."
It adds, "Stablecoins and tokenized products are new, and most treasury professionals continue to be cautious of them until regulations are clear. The GENIUS Act, passed in July 2025, set a federal framework with 1:1 reserves and banking-like oversight. Regulators such as the Office of the Comptroller of the Currency (OCC) and FinCEN are working on rules, expected to be fully implemented by 2027. Tax and accounting regulations are also pending. Nearly half of all respondents (47%) say that tokenized products or stablecoin will not matter at their organizations in the next three years, while 20% are unsure. Only 7% report that the evolution of stablecoin/tokenized products will be either extremely or very relevant at their organizations in the next three years, while 26% think these products will be moderately or slightly relevant."
The Investment Company Institute published, "Worldwide Regulated Open-Fund Assets and Flows, First Quarter 2026," which shows that money fund assets globally rose by $190.7 billion, or 1.4%, in Q1'26 to a record $13.470 trillion. (The totals would have been $13.742 trillion if Australia and New Zealand had been included.) Increases were led by a sharp jump in money funds in China and Ireland, while the U.S. and the Republic of Korea also showed gains. Meanwhile, money funds in India and Japan were lower. MMF assets worldwide increased by $1.626 trillion, or 13.7%, in the 12 months through 3/31/26, and money funds in the U.S. now represent 57.7% of worldwide assets. In Q4, Asian money fund totals moved back above European money fund totals, and the new Q1 data shows Asia extending its lead over Europe. We review the latest Worldwide MMF assets, below.
ICI's release says, "Worldwide regulated open-end fund assets, excluding funds of funds, decreased 0.8% to $87.23 trillion at the end of the first quarter of 2026. Worldwide net cash inflow to all funds was $931 billion in the first quarter, compared with $1.4 trillion of net inflows in the fourth quarter of 2025. The Investment Company Institute compiles worldwide regulated open-end fund statistics on behalf of the International Investment Funds Association (IIFA), the organization of national fund associations. The collection for the first quarter of 2026 contains statistics from 44 jurisdictions."
It explains, "The growth rate of total regulated open-end fund assets, as reported in US dollars, decreased due to US dollar appreciation over the first quarter of 2026. For example, on a US dollar-denominated basis, fund assets in Europe decreased by 1.7% in the first quarter, compared with an increase of 0.5% on a euro-denominated basis."
ICI's quarterly continues, "On a US dollar-denominated basis, equity fund assets decreased by 2.6% to $41.46 trillion at the end of the first quarter of 2026. Bond fund assets increased by 1.7% to $16.94 trillion in the first quarter. Balanced/mixed fund assets decreased by 1.1% to $8.42 trillion in the first quarter, while money market fund assets increased by 1.4% globally to $13.47 trillion."
The release also tells us, "At the end of the first quarter of 2026, 48% of worldwide regulated open-end fund assets were held in equity funds. The asset share of bond funds was 19% and the asset share of balanced/mixed funds was 10%. Money market fund assets represented 15% of the worldwide total. By region, 57% of worldwide assets were in the Americas in the first quarter of 2026, 31% were in Europe, and 12% were in Africa and the Asia-Pacific regions."
ICI adds, "Net sales of regulated open-end funds worldwide were $931 billion in the first quarter of 2026.... Globally, bond funds posted an inflow of $385 billion in the first quarter of 2026, after recording an inflow of $385 billion in the fourth quarter.... Money market funds worldwide experienced an inflow of $193 billion in the first quarter of 2026 after registering an inflow of $467 billion in the fourth quarter of 2025."
According to Crane Data's analysis of ICI's "Worldwide" fund data, the U.S. sustained its position as the largest money fund market in Q1'26 with $7.772 trillion, or 57.7% of all global MMF assets. U.S. MMF assets increased by $25.8 billion (0.3%) in Q1'26 and have increased by $797.3 billion (11.4%) in the 12 months through March 31, 2026. China remained in second place among countries overall. China saw assets increase $109.2 billion (5.1%) in Q1 to $2.259 trillion (16.8% of worldwide assets). Over the 12 months through March 31, 2026, Chinese MMF assets have increased by $422.5 billion, or 23.0%.
Ireland remained third among country rankings, ending Q1 with $1.091 trillion (8.1% of worldwide assets). Irish MMFs were up $26.9B for the quarter, or 2.5%, and up $138.8B, or 14.6%, over the last 12 months. Luxembourg remained in fourth place with $789.1 billion (5.9% of worldwide assets). Assets there increased $14.4 billion, or 1.9%, in Q1, and were up $101.7 billion, or 14.8%, over one year. France was in fifth place with $507.5B, or 3.8% of the total, up $5.7 billion in Q1 (1.1%) and up $42.7B (9.2%) over 12 months.
Australia was listed (by us) in sixth place with $268.7 billion, or 2.0% of worldwide assets. Its MMF data was unavailable for 2024 and 2025 and Q1 2026, so we kept the 2023 Q4 numbers. Mexico was in 7th place with $166.1 billion (1.2%); assets there increased $4.3 billion (2.6%) in Q1 and increased by $32.1 billion (23.9%) over 12 months. Korea was the 8th ranked country and saw MMF assets increase $17.1 billion, or 12.6%, in Q1'26 to $152.8 billion (1.1% of the total); they've increased $22.5 billion (17.3%) for the year. Brazil was in 9th place, as assets decreased $975 million, or -0.7%, to $140.1 billion (1.0% of total assets) in Q1. They've increased $14.2 billion (11.3%) over the previous 12 months. ICI's statistics show Japan was listed in 10th place with $100.8B, or 0.7% of total assets, down $4.4 billion (-4.1%) for the quarter.
India was in 11th place, decreasing $8.1 billion, or -8.9%, to $83.3 billion (0.6% of total assets) in Q1 and increasing $4.9 billion (6.2%) over the previous 12 months. Canada ($73.8B, down $432 million and up $7.1B over the quarter and year, respectively) ranked 12th ahead of United Kingdom. ($42.6B, up $1.8B and up $10.2B). Switzerland ($40.3B, down $1.6B and down $6.7B) and Chinese Taipei ($38.4B, down $1.1B and up $9.9B), rank 14th and 15th, respectively. Argentina, Chile, Turkey, Spain and South Africa round out the 20 largest countries with money market mutual funds.
ICI's quarterly series shows money fund assets in the Americas total $8.231 trillion, up $37.9 billion in Q1. Asian MMFs increased by $112.7 billion to $2.646 trillion, and Europe saw its money funds rise $41.7 billion in Q1'26 to $2.569 trillion. Africa saw its money funds decreased $1.7 billion to $24.4 billion.
Note that Ireland and Luxembourg's totals are primarily "offshore" money funds marketed to global multinationals, while most of the other countries in the survey have mainly domestic money fund offerings. Contact us if you'd like our latest "Largest Money Market Funds Markets Worldwide" spreadsheet, based on ICI's data. (Let us know too if you'd like to see our latest Money Fund Intelligence International product, which tracks "offshore" money market funds domiciled in Europe and outside the U.S.)
A press release titled, "State Street Investment Management Accelerates Digital and Tokenization Innovation with Launch of State Street Stablecoin Reserves Money Market Fund," tells us, "State Street Investment Management ... announced the launch of the State Street Stablecoin Reserves Money Market Fund, a GENIUS Act-aligned registered Rule 2a-7 government money market fund designed specifically for the unique needs of stablecoin issuers. The Guiding and Establishing National Innovation for U.S. Stablecoins ('GENIUS') Act, passed into law by the United States Congress in July 2025, creates a clearer regulatory framework to utilize money market funds registered under the Investment Company Act of 1940 to back the issuance of stablecoins. The fund was designed and built to comply with the GENIUS Act. State Street Bank and Trust Company, and Anchorage Digital, home to the first federally chartered crypto bank in the United States, are initial investors in the fund." (Note: We're still accepting registrations for next week's Money Fund Symposium, which is June 24-26 in Jersey City! Attendees and Crane Data subscribers may access the conference materials via our "Money Fund Symposium 2026 Download Center." See you in New Jersey next week!)
Yie-Hsin Hung, president and CEO of State Street Investment Management, comments, "For more than 40 years, the cash management business of State Street Investment Management has delivered liquidity solutions to the world's largest and most sophisticated institutional investors. With the GENIUS Act, a clear framework has been established for how stablecoin reserves can be invested. State Street Investment Management's time-tested approach to cash management focuses on principal preservation, liquidity and income, and we're excited to partner with Anchorage Digital to bring these capabilities to the digital assets space."
The release quotes Nathan McCauley of Anchorage Digital, "Stablecoins are quickly becoming core financial infrastructure, making the quality and management of their reserves critically important. As the GENIUS Act establishes a clear regulatory framework, this fund brings together State Street Investment Management's decades of cash management expertise with Anchorage Digital's regulated stablecoin infrastructure to help advance a more resilient, institutional-grade foundation for stablecoin reserves."
The release states, "The fund launches as the stablecoin market enters a new phase of growth, with global stablecoin issuance projected to reach between $1.9 trillion and $4 trillion by 2030 as institutional adoption accelerates. This expansion is expected to drive an increase in stablecoin reserves backed by government money market fund assets, creating new opportunities for State Street's institutional liquidity management solutions to back the digital ecosystem."
It continues, "The launch builds on the recent introduction of the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized liquidity solution enabling 24/7 onchain cash management via stablecoins, subject to the availability of stablecoin in the fund's portfolio, and advances State Street Investment Management's broader strategy of enabling seamless, institutional-grade participation in tokenized markets."
For more on Stablecoin Reserve funds, see these Crane Data News stories: "Federated MMR Digital Treasury Fund" (6/10/26), "BNY Files for Dreyfus On-Chain Liquidity Fund for Stablecoin Reserves" (5/22/26), "Fidelity Files for Reserves Digital Fund, 5th Stablecoin Reserve MMF" (3/23/26), "Dec. MFI: MMFs Hit $8.0T, Top 10; JPM '26 Outlook; Stablecoin Reserves" (12/5/25), "State Street Files for Stablecoin Reserves MMF; BNY's Stephanie Pierce" (11/19/25), "BNY Stablecoin Reserves Goes Live; ICI: Assets Eke Out Record $7.5T" (11/14/25),"BNY's Vince on Q3 Call: Money Market Evolution, Dreyfus, Stablecoins" (10/22/25), "BlackRock Breaks $1 Trillion in Money Funds; Offers Stablecoin Reserve" (10/17/25), "Sept. MFI: Assets Break $7.6T; Stablecoin Reserves; JPM on Offshore MFs" (9/8/25), "BNY Dreyfus to Launch Stablecoin Reserves Fund; Joins Goldman, Circle" (8/20) and "Goldman Files to Launch Stablecoin Reserves Fund; Circle Q2 Earnings" (8/13/25).
In other news, 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 12) includes Holdings information from 56 money funds (unchanged from two weeks ago), or $3.821 trillion (down from $4.076 trillion) of the $8.289 trillion in total money fund assets (or 46.1%) 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 10 News, "June MF Portfolio Holdings: Assets Jump; Treasuries Surge, Repo Up.")
Our latest Weekly MFPH Composition summary shows Government assets dominating the holdings list with Treasuries totaling $1.745 trillion (down from $1.886 trillion two weeks ago), or 45.7%; Repurchase Agreements (Repo) totaling $1.346 trillion (down from $1.437 trillion two weeks ago), or 35.2%, and Government Agency securities totaling $409.5 billion (down from $432.6 billion two weeks ago), or 10.7%. Commercial Paper (CP) totaled $141.2 billion (up from $138.4 billion two weeks ago), or 3.7%. Certificates of Deposit (CDs) totaled $77.2 billion (unchanged from $77.2 billion two weeks ago), or 2.0%. The Other category accounted for $65.1 billion or 1.7%, while VRDNs accounted for $36.4 billion or 1.0%.
The Ten Largest Issuers in our Weekly Holdings product include: the US Treasury with $1.745 trillion, Fixed Income Clearing Corp with $471.1B, the Federal Home Loan Bank with $253.3B, JP Morgan with $128.3B, Federal Farm Credit Bank with $91.5B, RBC with $89.2B, BNP Paribas with $86.8B, Citi with $74.4B, Wells Fargo with $73.4B and Bank of America with $48.7B.
The Ten Largest Funds tracked in our latest Weekly include: JPMorgan 100% US Trs MM ($334.4B), JPMorgan US Govt MM ($332.4B), Fidelity Inv MM: Govt Port ($272.0B), State Street Inst US Govt ($225.4B), Morgan Stanley Inst Liq Govt ($221.0B), BlackRock Lq FedFund ($191.5B), BlackRock Lq Treas Tr ($186.0B), Dreyfus Govt Cash Mgmt ($168.7B), Fidelity Inv MM: MM Port ($163.1B) and Allspring Govt MM ($133.0B). (Let us know if you'd like to see our latest domestic U.S. and/or "offshore" Weekly Portfolio Holdings collection and summary.)
The Federal Reserve released its latest quarterly "Z.1 Financial Accounts of the United States" statistical survey (a.k.a. "Flow of Funds") late last week, and among the 4 tables it includes on money market mutual funds, the First Quarter 2026 edition show that Total MMF Assets increased by $99 billion to $8.290 trillion in Q1'26. The Household Sector, by far the largest investor segment with $5.419 trillion, saw the biggest asset increase in Q1, followed by Other Financial Business (formerly Funding Corps) and Nonfinancial Corporate Business. The Fed's latest Z.1 numbers, which contain one of the few looks at money fund investor segments available, also showed noticeable increases for the Exchange-traded Funds and Rest of the World categories in Q1 2026.
Households, Nonfinancial Corporate Business, Other Financial Business, Rest of the World, Nonfinancial Noncorporate Business, Exchange-traded funds, State & Local Governments and State & Local Govt Pension Funds categories saw asset increases in Q1, while Property-Casualty Insurance, Life Insurance Companies, Private Pension Funds and Mutual Funds saw asset decreases last quarter. Over the past 12 months, the Household Sector, Nonfinancial Corporate Business and Other Financial Business categories showed the biggest asset increases, while Mutual Funds saw the only asset decrease.
The Fed's "Table F521.s," "Money Market Fund Shares," shows that total assets increased by $99 billion, or 1.2%, in the first quarter to $8.290 trillion. The largest segment, the Household sector, totals $5.419 trillion, or 65.4% of assets. The Household Sector increased by $90 billion, or 1.7%, in the quarter. Over the past 12 months through March 31, 2026, Household assets were up $625 billion, or 13.0%.
Nonfinancial Corporate Businesses, the second-largest segment according to the Fed's data series, held $1.102 trillion, or 13.3% of the total. Assets here increased by $4 billion in the quarter, or 0.4%, and they've increased by $120 billion, or 12.2%, over the past year. Other Financial Business was the third-largest investor segment with $604 billion, or 7.3% of money fund shares. This category rose $10 billion, or 1.8%, in the latest quarter. Other Financial Business, which we believe includes Securities Lending, has increased by $68 billion, or 12.6%, over the previous 12 months.
The Private Pension Funds category was the fourth-largest investor segment with $230 billion, or 2.8%, while the fifth-largest segment, Rest of the World, held $229 billion (2.8%), and the sixth-largest category, Mutual Funds, held $210 billion (2.5%). Nonfinancial Noncorporate Business held $157 billion (1.9%), Life Insurance Companies held $112 billion (1.3%), State & Local Governments held $81 billion (1.0%), Exchange-traded Funds held $59 billion (0.7%), Property-Casualty Insurance held $55 billion (0.7%), and State & Local Govt Pension Funds held $32 billion (0.4%) according to the Fed's Z.1 breakout.
The Fed's "Flow of Funds" Table S123.s shows "Money Market Mutual Funds" largely invested in "Loans (Security Repurchase Agreements)" with $2.932 trillion, or 35.4%, and "Debt Securities," or Credit Market Instruments, with $5.001 trillion, or 60.3% of the total. Debt securities include: Open market paper ($302 billion, or 3.6%; we assume this is CP), Treasury securities ($3.426 trillion, or 41.3%), Agency and GSE-backed securities ($1.100 trillion, or 13.3%), Municipal securities ($150 billion, or 1.8%) and Corporate and foreign bonds ($22 billion, or 0.3%).
Another large MMF position in the Fed's series includes `Time and savings deposits ($283 billion, or 3.4%). Money funds also hold minor positions in Miscellaneous assets ($74 billion, or 0.9%) and Foreign deposits ($0.0 billion). Note: The Fed also lists "Variable Annuity Money Funds," which currently total $50 billion.
During Q1, Debt Securities were down $21 billion. This subtotal included: Open Market Paper (down $17 billion), Treasury Securities (down $91 billion), Agency- and GSE-backed Securities (up $87 billion), Corporate & Foreign Bonds (up $6 billion) and Municipal Securities (down $5 billion). In the first quarter of 2026, Loans (Security Repurchase Agreements) were down $62 billion, Foreign Deposits were unchanged, Time & Savings Deposits were up $31 billion, and Miscellaneous Assets were up $151 billion.
Over the 12 months through 3/31/26, Debt Securities were up $748 billion, which included Open Market Paper (down $22B), Treasury Securities (up $546B), Agencies (up $198B), Municipal Securities (up $12B), and Corporate and Foreign Bonds (up $15B). Foreign Deposits fell $1B and Time and Savings Deposits decreased $37B. Loans (Securities Repurchase Agreements) were up $111B over the year, while Miscellaneous Assets rose $70B.
The S123.s table shows `Stable NAV money market funds with $7,898 billion, or 95.3% of the total (up $66.5B or 0.8% in Q1 and up $843B or 12.0% over 1-year), and Floating NAV money market funds with $392 billion, or 4.7% (up $32.9B or 9.2% in Q1 and up $48B or 14.1% over 1-year). Government money market funds total $6.756 trillion, or 81.5% (up $65.8B or 1.0% in Q1 and up $755B or 12.6% over 1-year), `Prime money market funds total $1.382 trillion, or 16.7% (up $39.5B or 2.9% in Q1 and up $126B or 10.0% over 1-year) and Tax-exempt money market funds $152B, or 1.8% (down $6.0B or -3.8% in Q1 and up $10B or 7.2% last year).
Note that the Federal Reserve renumbered its Z.1 tables with the latest release. The report's "Release Highlights" says, "Effective with this release, all Z.1 Financial Accounts of the United States release tables have been renumbered to more closely align with the System of National Accounts (SNA) classification hierarchies for sectors and instruments." The Fed adds, "Money market fund shares (tables F521.t and F521.s) have been moved to immediately precede mutual fund shares (tables F522.1.t and F522.1.s)." The former Table L.206 is now F521.s, and the former L.121 "Money market funds" sector table is now S123.s.
Crane Data's latest Money Fund Intelligence International shows that assets in European or "offshore" money market mutual funds increased over the past 30 days to a new record high of $1.697 trillion, the previous record of $1.672 trillion was seen two months prior. Yields were mixed, while assets for USD, EUR and GBP MMFs all rose over the past month. Like U.S. money fund assets, European MMFs have repeatedly hit record highs in 2023, 2024, 2025 and 2026. These U.S.-style money funds, domiciled in Ireland or Luxembourg and denominated in US Dollars, Pound Sterling and Euros, increased by $29.5 billion over the 30 days through 6/11. The totals are up $113.1 billion (7.1%) year-to-date for 2026. They were up $151.9 billion (10.6%) for 2025, up $235.3 billion (19.7%) for 2024 and up $166.9 billion (16.2%) for the year 2023. (Note that currency moves in the U.S. Dollar cause Euro and Sterling totals to shift when they're translated back into totals in USD. See our latest MFI International for more on the "offshore" money fund marketplace. These funds are only available to qualified, non-U.S. investors and are almost entirely institutional.) (Note too: Mark your calendars for our next European Money Fund Symposium, which will be held Sept. 24-25 in Paris, France.)
Offshore US Dollar money funds increased $15.8 billion over the last 30 days and are up $51.8 billion YTD to $887.8 billion; they increased $92.3 billion in 2025. Euro funds increased E2.9 billion over the past month. YTD, they're up E29.4 billion to E359.8 billion, for 2025, they increased by E12.6 billion. GBP money funds increased L7.7 billion over 30 days, and they're up L13.5 billion YTD at L286.6B, for 2025, they rose L18.5 billion. U.S. Dollar (USD) money funds (323) account for over half (52.3%) of the "European" money fund total, while Euro (EUR) money funds (241) make up 24.9% and Pound Sterling (GBP) funds (211) total 22.8%. We summarize our latest "offshore" money fund statistics and our Money Fund Intelligence International Portfolio Holdings (which went out to subscribers Friday), below.
Offshore USD MMFs yield 3.57% (7-Day) on average (as of 6/11/26), unchanged from a month earlier. Yields averaged 4.20% on 12/30/22 and 0.03% on 12/31/21. EUR MMFs, which left negative yield territory in the second half of 2022, yield 2.01% on average, up 4 bps from a month ago and up from 1.48% on 12/30/22 and -0.80% on 12/31/21. Meanwhile, GBP MMFs broke above the 5.0% barrier 34 months ago, but they broke back below 5.0% 23 months ago. They now yield 3.76%, up 2 bp from a month ago, and up from 3.17% on 12/30/22. Sterling yields were 0.01% on 12/31/21.
Crane's June MFI International Portfolio Holdings, with data as of 5/31/26, show that European-domiciled US Dollar MMFs, on average, consist of 29% in Commercial Paper (CP), 17% in Certificates of Deposit (CDs), 25% in Repo, 16% in Treasury securities, 12% in Other securities (primarily Time Deposits) and 1% in Government Agency securities. USD funds have on average 46.4% of their portfolios maturing Overnight, 5.8% maturing in 2-7 Days, 7.7% maturing in 8-30 Days, 9.8% maturing in 31-60 Days, 8.6% maturing in 61-90 Days, 12.4% maturing in 91-180 Days and 9.2% maturing beyond 181 Days. USD holdings are affiliated with the following countries: the U.S. (35.4%), Canada (12.2%), France (10.5%), Japan (7.6%), the U.K. (5.1%), Germany (5.0%), Australia (4.7%), the Netherlands (4.0%), Sweden (3.4%) and Finland (2.5%).
The 10 Largest Issuers to "offshore" USD money funds include: the US Treasury with $142.7B (16.1%), Fixed Income Clearing Corp with $42.7B (4.8%), JP Morgan with $30.8B (3.5%), RBC with $30.2B (3.4%), Barclays PLC with $22.4B (2.5%), Wells Fargo with $22.0B (2.5%), Credit Agricole with $21.6B (2.4%), Nordea Bank with $21.1B (2.4%), Toronto-Dominion Bank with $20.6B (2.3%) and Citi with $17.8B (2.0%).
Euro MMFs tracked by Crane Data contain, on average 37% in CP, 22% in CDs, 14% in Other (primarily Time Deposits), 24% in Repo, 2% in Treasuries and 1% in Agency securities. EUR funds have on average 40.8% of their portfolios maturing Overnight, 7.3% maturing in 2-7 Days, 11.8% maturing in 8-30 Days, 12.2% maturing in 31-60 Days, 8.2% maturing in 61-90 Days, 11.3% maturing in 91-180 Days and 8.3% maturing beyond 181 Days. EUR MMF holdings are affiliated with the following countries: France (25.4%), the U.S. (10.6%), Japan (10.2%), Canada (9.9%), the Netherlands (7.0%), Germany (5.6%), the U.K. (5.1%), Belgium (4.2%), Australia (4.0%) and Sweden (4.0%).
The 10 Largest Issuers to "offshore" EUR money funds include: Credit Agricole with E18.1B (5.6%), BNP Paribas with E14.4B (4.5%), JP Morgan with E11.9B (3.7%), ING Bank with E10.9B (3.4%), Mizuho Corporate Bank Ltd with E10.4B (3.2%), Bank of Nova Scotia with E8.8B (2.7%), Societe Generale with E8.4B (2.6%), RBC with E8.4B (2.6%), Agence Central de Organismes de Securite Sociale with E8.2B (2.6%) and Republic of France with E8.1B (2.5%).
The GBP funds tracked by MFI International contain, on average (as of 5/31/26): 36% in CDs, 20% in CP, 21% in Other (Time Deposits), 20% in Repo, 2% in Treasury and 1% in Agency. Sterling funds have on average 38.2% of their portfolios maturing Overnight, 7.2% maturing in 2-7 Days, 8.0% maturing in 8-30 Days, 12.2% maturing in 31-60 Days, 10.6% maturing in 61-90 Days, 13.9% maturing in 91-180 Days and 9.9% maturing beyond 181 Days. GBP MMF holdings are affiliated with the following countries: Canada (16.4%), France (14.7%), the U.K. (12.6%), Japan (11.7%), the U.S. (10.8%), Australia (7.6%), the Netherlands (5.2%), Singapore (3.7%), Finland (3.1%) and Sweden (2.9%).
The 10 Largest Issuers to "offshore" GBP money funds include: UK Treasury with L14.4B (5.5%), RBC with L13.5B (5.2%), BNP Paribas with L10.8B (4.2%), Citi with L9.0B (3.4%), Toronto-Dominion Bank with L8.4B (3.2%), Bank of Nova Scotia with L8.0B (3.1%), Credit Agricole with L7.5B (2.9%), Mizuho Corporate Bank Ltd with L7.3B (2.8%), Nordea Bank with L6.9B (2.7%) and Sumitomo Mitsui Trust Bank with L6.7B (2.6%).
In related news, the U.K.'s Financial Conduct Authority released a statement "FCA update on reforms to the UK Money Market Fund Regulation," which tells us, "We are planning to introduce, through a new rule, a requirement that all MMFs hold sufficient liquidity for adequate resilience. This is to support our objectives of maintaining financial stability and market integrity. We intend to retain in rules the current minimum WLA requirements as set out in UK MMFR. However, we intend to set out in guidance our strong supervisory expectation that stable NAV MMFs will need to hold 40% WLA and variable NAV MMFs will need to hold 20% WLA in order to meet the new resilience requirement."
They explain, "Given this modified approach to WLA compared to what had been proposed in the consultation, our expectation is that MMFs' ability to be temporarily below the 40%/20% WLA levels should be used only to meet redemptions or for reasons that are beyond the manager's control (which we consider would arise very rarely). We would not expect MMFs to regularly hold lower levels of WLA at quarter and year-end. However, we are planning to retain the current minimum DLA requirements and do not plan new guidance on DLA levels. DLA as well as WLA should be sufficient for adequate resilience."
The FCA adds, "We intend to introduce in large part the other measures set out in the CP, including delinking and enhanced Know Your Customer requirements on investor concentration and the risk of correlated withdrawal. Our updated proposals will deliver a clear increase in the level of resilience expected of UK MMFs while making sure they can continue to meet the needs of investors. They are subject to final consideration and sign-off within the FCA."
See Reuters' "UK financial regulator softens proposed change to UK money market fund rules," which says, "Britain's financial regulator on Monday slightly softened its proposals for money market funds to hold more liquid assets which are designed to ensure they are resilient enough to weather financial shocks." (See too Crane Data's May 28 News, "Reuters: UK to Tighten MF Rules;" our May 18 News, "EC Report Proposes Higher Weekly Liquidity Levels for European MMFs;" our May 15 News, "European Money Fund Assets Inch Down to $1.67 Tril; MFI Intl Holdings," which says, 'The FCA, which regulates markets in the U.K., published a policy paper titled, 'Reforms to Money Market Fund Regulations;'' and our May 26 News, "European Money Fund Symposium Heads to Paris, Sept. 24-25; CD Events.")
The June issue of our Bond Fund Intelligence, which will be sent to subscribers Friday a.m., features the articles, "NY Fed Examines Credit Cycle & Corporate Bond Returns," which reviews a recent report from the Federal Reserve Bank of New York; and "Ultra-Short Bond Funds Becoming Popular Again," which excerpts from several recent articles on the resurgence of ultra-short bond funds. BFI also recaps the latest Bond Fund News and includes our Crane BFI Indexes, which show that bond fund returns rose again in May while yields jumped. We excerpt from the new issue below. (Contact us if you'd like to see our latest Bond Fund Intelligence and BFI XLS spreadsheet, or our Bond Fund Portfolio Holdings data.)
BFI's lead article states, "The Federal Reserve Bank of New York published, 'The Global Credit Cycle in Corporate Bond Returns.' The paper says, 'The global corporate nonfinancial bond market is both a large investment asset class and a vital source of funding for nonfinancial firms. With $19 trillion outstanding at the end of 2024, a broad portfolio of corporate bonds would be expected to be well diversified. Yet, in 37 percent of months between 1998 and 2024, more than 80 percent of bonds in the ICE Global Bond Indices—a portfolio with over 10,000 constituents spanning diverse industries, credit ratings, and regions—moved in the same direction, suggesting a large degree of synchronization. In this post, we introduce the global credit factor, which proxies for the global price of risk in international corporate bond markets. The global credit factor creates a global credit cycle in bond risk premia and generates predictable co-movement in bond prices.'"
It continues, "The paper asks, 'Is there a global credit cycle in global corporate bond returns?' They reply, 'To answer that question, we construct a proxy for a global component of credit risk pricing, which we dub the global credit factor. Our approach, described in detail in our Staff Report, is motivated by the literature on intermediary asset pricing, which argues that risk prices reflect balance sheet constraints of financial intermediaries. Because the tightness of balance sheet constraints fluctuates over time, so do risk prices.'"
Our "Ultra-Short" article states, "The Wall Street Journal wrote recently about, 'Why Ultra-Short Bond Funds Are Ultra Popular Right Now.' They explain, 'So-called ultra-short bond funds, which typically hold debt that matures in less than a year, have taken in more money than any other Morningstar fixed-income ETF category this year, and posted their largest monthly inflow ever in March.'"
It says, "The article continues, 'Short-term funds are offering close to 4% yields and relatively little price volatility—a setup that has made them hot since the Federal Reserve began lifting benchmark interest rates in 2022. Ultra-short funds are comparable to money-market funds but can invest in a wider range of debt, offering more yield but less stability.'"
Our first News brief, "Returns Up Again, Yields Jump in May," states, "Bond fund returns were higher again in May while yields jumped. Our BFI Total Index rose 0.39% over 1-month and rose 5.71% over 12 months. (Money funds rose 3.83% over 1-year as measured by our Crane 100 Index.) The BFI 100 increased 0.37% in May and rose 5.61% over 12 mos. Our BFI Conservative Ultra-Short Index was up 0.32% over 1-month and 4.38% for 1-year; Ultra-Shorts rose 0.36% and 4.50%. Short-Term rose 0.20% and 4.38%, and Intm-Term increased 0.31% in May and rose 5.69% over 12 mos. BFI's Long-Term Index was up 0.56% and 5.96%. High Yield rose 0.51% in May and 6.98% over 12 mos."
A second News brief states: "'Vanguard Expands High-Yield Offering with Vanguard U.S. High-Yield Corporate Bond Index ETF,' says a press release. It tells us, 'Vanguard ... announced the launch of the Vanguard U.S. High-Yield Corporate Bond Index ETF (VCHY), expanding its fixed income lineup with index-based exposure to U.S. dollar-denominated high-yield corporate bonds. The ETF is managed by Vanguard Capital Management's Fixed Income Group.' They quote Sara Devereux, 'The high-yield market is both sizable and growing in importance within fixed income portfolios, yet much of today’s exposure sits in higher-cost structures. VCHY expands Vanguard's ETF lineup with a low-cost, index-based approach to U.S dollar-denominated High-yield corporate bonds, designed to deliver broad, rules-based exposure with a focus on liquidity and precision. It provides investors with a clear and efficient way to help access high yield within a diversified portfolio.'"
Another brief says, "Federated Hermes' Karen Manna writes 'Bond Markets Pinpoint Conflicting Dynamics.' The brief tells us, 'In discussions with investors, some frustration with fixed income remains front and center. The drawdown in 2022 fundamentally altered perceptions of the asset class, and even though markets recovered quickly, that experience continues to anchor positioning today. What has changed is the regime: a structurally higher rate environment and persistent inflation uncertainty challenge the assumption that simply extending duration will deliver returns.... [W]e see a more compelling risk-reward in a tactical posture focused on the front end, where investors can capture attractive income while maintaining flexibility in an evolving policy and macro backdrop. In a market characterized by tight spreads, elevated uncertainty, and limited margin for error, the focus remains clear: lean into what is knowable, maintain valuation discipline, and position portfolios to capture income while remaining flexible as the macro outlook evolves.'"
A BFI sidebar, "Hoag Tells Barron's 'Lean In'," states, "The latest issue of Barron's interviews David Hoag, portfolio co-manager of Capital Group's Bond Fund of America in a piece titled, 'Why This $101 Billion Bond Fund Manager Is Leaning Into the Chaos.' They write, 'Higher yields are spooking bond investors. Your best bet may be to lean in, according to the co-manager of one of the market's largest bond funds.... On Wednesday, the yield on 10-year Treasury notes stood at 4.49%, up from less than 4% at the start of the conflict.'"
Finally, another sidebar, "Vanguard on Tech, AI," states, "Vanguard also wrote recently on 'The Tech Pillars Shaping Fixed Income's Future.' They explain, 'It is an exciting time for technology in fixed income. Compared with the equity market, the bond market is much larger and more opaque, encompassing millions of individual securities that trade over the counter rather than on centralized exchanges. This inherent complexity has historically made it more challenging to navigate, less transparent, and ripe for the application of tech by sophisticated investors.'"
A press release tells us, "T. Rowe Price Marks 50 Years of Money Market and Tax-Free Mutual Funds." It says, "T. Rowe Price, a premier global investment management firm and a leader in retirement, is marking 2026 with the 50th anniversaries for two mutual funds: T. Rowe Price Government Money Fund (PRRXX) and T. Rowe Price Tax-Free Income Fund (PRTAX). The anniversaries come at a time of heightened market volatility, underscoring investors' needs for liquidity management, tax-efficiency, and portfolio resilience. These were the first T. Rowe Price mutual funds in each category, and they join six other firm funds with track records of 50 years or more." (Note: Register soon for our upcoming Money Fund Symposium, which will take place in just 2 weeks -- June 24-26 -- in Jersey City, NJ!)
A section titled, "From Cash on the Sidelines to Cash as a Strategy," explains, "In the mid-1970s, savers faced a dilemma. Inflation was surging and interest rates were rising, but bank regulations limited their ability to earn competitive yields on deposits. Leveraging what was then a recent innovation, the investment industry attracted savers with money market mutual funds, which invested in short-term securities such as Treasury bills, commercial paper, and repurchase agreements."
It continues, "This shift helped define cash as an asset class. As a response to growing client demand, T. Rowe Price launched the Government Money Fund in January 1976, then known as T. Rowe Price Prime Reserve Fund. The rise of money market mutual funds through the Seventies reshaped how investors used cash, as assets in the category grew from $2 billion to $74 billion during the last six years of the decade. By 1982, assets reached $200 billion; today, they stand at approximately $8 trillion, according to the Investment Company Institute."
Alex Obaza, money market fund portfolio manager at T. Rowe Price, comments, "Cash plays a critical role in investors' portfolios, especially during periods of uncertainty. We have seen many interest rate and market cycles over the last 50 years. All the while, money market funds have been anchors for investors, helping them manage volatility and maintain liquidity while earning competitive levels of income. Our commitment to rigorous research and disciplined liquidity management have served investors well."
The release states, "As of March 31, 2026, T. Rowe Price manages approximately $69 billion in liquidity-focused strategies, including approximately $34 billion in money market mutual funds.
The release also tells us, "Tax-free municipal bond funds were largely a creation of the Tax Reform Act of 1976, though the legacy of the federal tax exemption for interest on state and local bonds dates to the Revenue Act of 1913, which gave birth to the modern federal income tax. As Congress worked to expand the use of tax-exempt bonds as an economic development tool, T. Rowe Price launched the Tax-Free Income Fund in October 1976. Municipal bond funds gave investors a way to generate income that would not be subject to federal taxes while supporting essential infrastructure projects such as highways, bridges, water and sewage treatment plants, schools, electric and gas utilities, parks, mass transit, and more."
T Rowe Price's Head of Tax-Exempt Investing Jim Murphy says, "Saving on taxes has long been a primary focus for many investors. Beyond that, tax-exempt bonds have been an effective diversifier as a complement in stock-heavy portfolios. As the municipal bond market has grown over the decades, it has become increasingly complex, making strong credit research and disciplined portfolio construction more important than ever in serving investors."
Finally, the release adds, "While markets, interest rate environments, and regulations have evolved significantly over the past 50 years, the role of cash and tax-free income remains constant. T. Rowe Price's money market and tax-free bond fund portfolio managers continue their research-driven approach to help investors effectively navigate change. As of March 31, 2026, T. Rowe Price manages approximately $31 billion in tax-exempt portfolios, including approximately $21 billion in tax-exempt mutual funds."
For more 50th Money Fund Birthdays, see these Crane Data News stories: "Dreyfus Liquid Assets Celebrates 50th Birthday; ICI Trends for December" (1/31/24), "Federated Hermes' Money Market Celebrates 50th; Weekly, ICI Holdings" (1/18/24) and "October MFI: MMFs 50th, Reforms; Ultra-Short BFs; Tax-Exempt Exits” (10/7/20).
Crane Data's June Money Fund Portfolio Holdings, with data as of May 31, 2026, show that holdings of Treasuries jumped sharply last month. Money market securities held by Taxable U.S. money funds (tracked by Crane Data) increased by $255.9 billion to $8.225 trillion in May, after decreasing $105.9 billion in April and $103.0 billion in March. Taxable assets increased $113.2 billion in February, but they decreased $54.6 billion in January. Holdings increased $231.8 billion in December, $134.3 billion in November and $158.4 billion in October. Treasuries, the largest portfolio composition segment, jumped by $218.9 billion. Repo, the second largest segment, increased $17.9 billion in May. Agencies were the third largest segment, and CP remained fourth, ahead of CDs, Other/Time Deposits and VRDNs. Below, we review our Money Fund Portfolio Holdings statistics. (Visit our Content center to download, or contact us to request our latest Portfolio Holdings reports.)
Among taxable money funds, Treasury securities increased $218.9 billion (6.9%) to $3.373 trillion, or 41.0% of holdings, after decreasing $266.2 billion in April and increasing $19.2 billion in March. Repurchase Agreements (repo) rose by $17.9 billion (0.6%) to $2.992 trillion, or 36.4% of holdings, in May, after increasing $51.5 billion in April. Government Agency Debt was up $4.6 billion, or 0.4%, to $1.188 trillion, or 14.4% of holdings. Agencies increased $90.7 billion in April but were flat in March (down $2.6 billion). Repo, Treasuries and Agency holdings now total $7.553 trillion, representing 91.8% of all taxable holdings.
Money fund holdings of CP, CDs and Other (mainly Time Deposits) rose in May. Commercial Paper (CP) increased $11.3 billion (3.9%) to $297.3 billion, or 3.6% of holdings. CP holdings decreased $5.0 billion in April but decreased $23.3 billion in March. Certificates of Deposit (CDs) increased $0.7 billion (0.3%) to $203.2 billion, or 2.5% of taxable assets. CDs increased $2.7 billion in April but decreased $4.5 billion in March. Other holdings, primarily Time Deposits, increased $2.5 billion (1.7%) to $154.2 billion, or 1.9% of holdings, after increasing $20.4 billion in April and decreasing $22.9 billion in March. VRDNs increased to $17.0 billion, or 0.2% of assets. (Note: This total is VRDNs for taxable funds only. We will post our Tax Exempt MMF holdings separately Wednesday around noon.)
Prime money fund assets tracked by Crane Data increased to $1.362 trillion, or 16.6% of taxable money funds' $8.225 trillion total. Among Prime money funds, CDs represent 14.9% (down from 15.0% a month ago), while Commercial Paper accounted for 21.8% (up from 21.2% a month ago). The CP totals are comprised of: Financial Company CP, which makes up 12.8% of total holdings, Asset-Backed CP, which accounts for 6.8%, and Non-Financial Company CP, which makes up 2.2%. Prime funds also hold 0.6% in US Govt Agency Debt, 14.0% in US Treasury Debt, 14.0% in US Treasury Repo, 1.6% in Other Instruments, 7.7% in Non-Negotiable Time Deposits, 11.3% in Other Repo, 12.6% in US Government Agency Repo and 1.0% in VRDNs.
Government money fund portfolios totaled $4.404 trillion (53.5% of all MMF assets), up from $4.301 trillion in April, while Treasury money fund assets totaled another $2.432 trillion (29.6%), up from $2.315 trillion the prior month. Government money fund portfolios were made up of 26.7% US Govt Agency Debt, 18.3% US Government Agency Repo, 29.5% US Treasury Debt, 24.9% in US Treasury Repo, 0.4% in Other Instruments. Treasury money funds were comprised of 76.5% US Treasury Debt and 23.4% in US Treasury Repo. Government and Treasury funds combined now total $6.836 trillion, or 83.1% of all taxable money fund assets.
European-affiliated holdings (including repo) increased by $12.6 billion in May to $717.8 billion; their share of holdings fell to 8.7% from last month's 8.9%. Eurozone-affiliated holdings increased to $503.7 billion from last month's $490.8 billion; they now account for 6.1% of overall taxable money fund holdings. Asia & Pacific related holdings were up at $334.6 billion (4.1% of the total) from last month's $326.0 billion. Americas related holdings increased to $7.169 trillion from last month's $6.934 trillion; they now represent 87.2% of holdings.
The overall taxable fund Repo totals were made up of: US Treasury Repurchase Agreements (up $3.8 billion, or 0.2%, to $1.857 trillion, or 22.6% of assets); US Government Agency Repurchase Agreements (up $10.6 billion, or 1.1%, to $977.4 billion, or 11.9% of total holdings), and Other Repurchase Agreements (up $3.5 billion, or 2.3%, to $158.0 billion, or 1.9% of holdings). The Commercial Paper totals were comprised of Financial Company Commercial Paper (up $4.7 billion to $174.7 billion, or 2.1% of assets), Asset-Backed Commercial Paper (up $5.4 billion to $93.2 billion, or 1.1%), and Non-Financial Company Commercial Paper (up $1.1 billion to $29.4 billion, or 0.4%).
The 20 largest Issuers to taxable money market funds as of May 31, 2026, include: the US Treasury ($3.373T, 41.0%), Fixed Income Clearing Corp ($1.158T, 14.1%), Federal Home Loan Bank ($842.3B, 10.2%), JP Morgan ($350.5B, 4.3%), RBC ($213.3B, 2.6%), Federal Farm Credit Bank ($213.0B, 2.6%), Citi ($204.1B, 2.5%), Wells Fargo ($171.2B, 2.1%), BNP Paribas ($154.1B, 1.9%), Credit Agricole ($97.1B, 1.2%), Bank of America ($95.2B, 1.2%), Barclays PLC ($89.1B, 1.1%), Sumitomo Mitsui Banking Corp ($83.4B, 1.0%), the Federal National Mortgage Association ($66.3B, 0.8%), Federal Home Loan Mortgage Corp ($60.9B, 0.7%), Mitsubishi UFJ Financial Group Inc ($59.7B, 0.7%), Goldman Sachs ($59.3B, 0.7%), Canadian Imperial Bank of Commerce ($57.2B, 0.7%), Bank of Montreal ($54.1B, 0.7%) and Toronto-Dominion Bank ($54.1B, 0.7%).
In the repo space, the 10 largest Repo counterparties (dealers) with the amount of repo outstanding and market share (among the money funds we track) include: Fixed Income Clearing Corp ($1.137T, 38.0%), JP Morgan ($338.9B, 11.3%), Citi ($197.8B, 6.6%), RBC ($173.5B, 5.8%), Wells Fargo ($159.5B, 5.3%), BNP Paribas ($145.4B, 4.9%), Credit Agricole ($79.4B, 2.7%), Sumitomo Mitsui Banking Corp ($71.8B, 2.4%), Bank of America ($66.7B, 2.2%) and Barclays PLC ($65.2B, 2.2%).
The largest users of the $5.6 billion in Fed RRP include: American Funds Central Cash ($2.5B), Columbia Short-Term Cash Fund ($1.1B), TCW Central Cash Fund ($0.9B), T Rowe Price Govt Reserve Fund ($0.8B), Principal Government MM ($0.3B), Cavanal Hill Govt Svc MM ($0.0B) and Cavanal Hill US Treas ($0.0B).
The 10 largest issuers of "credit" -- CDs, CP and Other securities (including Time Deposits and Notes) combined -- include: RBC ($39.8B, 6.9%), Toronto-Dominion Bank ($33.5B, 5.8%), Bank of America ($28.4B, 5.0%), Barclays PLC ($24.0B, 4.2%), Mizuho Corporate Bank Ltd ($23.5B, 4.1%), Fixed Income Clearing Corp ($21.3B, 3.7%), Australia & New Zealand Banking Group Ltd ($19.0B, 3.3%), Mitsubishi UFJ Financial Group Inc ($18.5B, 3.2%), Credit Agricole ($17.7B, 3.1%) and ING Bank ($17.6B, 3.1%).
The 10 largest CD issuers include: Toronto-Dominion Bank ($15.9B, 7.8%), Sumitomo Mitsui Trust Bank ($12.6B, 6.2%), Wells Fargo ($11.7B, 5.8%), Mitsubishi UFJ Financial Group Inc ($11.3B, 5.6%), Sumitomo Mitsui Banking Corp ($10.8B, 5.3%), Credit Agricole ($10.3B, 5.1%), Bank of Nova Scotia ($9.3B, 4.6%), Mizuho Corporate Bank Ltd ($9.3B, 4.6%), Barclays PLC ($8.6B, 4.2%) and Canadian Imperial Bank of Commerce ($8.2B, 4.0%).
The 10 largest CP issuers (we include affiliated ABCP programs) include: RBC ($19.9B, 7.5%), Toronto-Dominion Bank ($16.2B, 6.1%), Barclays PLC ($14.0B, 5.3%), JP Morgan ($11.6B, 4.3%), National Bank of Canada ($9.3B, 3.5%), Bank of Montreal ($9.2B, 3.4%), Bank of Nova Scotia ($7.8B, 2.9%), Capitolis Inc ($7.8B, 2.9%), Landesbank Baden-Wurttemberg ($7.2B, 2.7%) and ING Bank ($7.2B, 2.7%).
The largest increases among Issuers include: the US Treasury (up $218.9B to $3.373T), RBC (up $58.1B to $213.3B), BNP Paribas (up $10.4B to $154.1B), Credit Agricole (up $8.7B to $97.1B), Wells Fargo (up $8.0B to $171.2B), Nomura (up $5.2B to $19.2B), Bank of Montreal (up $4.7B to $54.1B), Deutsche Bank AG (up $4.6B to $35.0B), Landesbank Baden-Wurttemberg (up $4.5B to $8.5B) and Bank of Nova Scotia (up $4.3B to $37.1B).
The largest decreases among Issuers of money market securities (including Repo) in May were shown by: Morgan Stanley (down $25.5B to $8.1B), Goldman Sachs (down $23.4B to $59.3B), Citi (down $10.9B to $204.1B), Bank of America (down $6.3B to $95.2B), ING Bank (down $6.3B to $24.9B), Societe Generale (down $5.7B to $48.9B), Toronto-Dominion Bank (down $3.4B to $54.1B), Banco Santander (down $3.2B to $26.5B), Barclays PLC (down $2.4B to $89.1B) and the Federal Home Loan Mortgage Corp (down $1.8B to $60.9B).
The United States remained the largest segment of country-affiliations; it represents 81.9% of holdings, or $6.737 trillion. Canada (5.3%, $432.4B) was in second place, while France (4.3%, $350.3B) ranked third. Japan (3.1%, $256.7B) occupied fourth place. The United Kingdom (1.9%, $157.8B) remained in fifth place. Australia (0.7%, $58.1B) was sixth, followed by Germany (0.7%, $55.7B), Netherlands (0.6%, $45.1B), Spain (0.5%, $44.2B), and Sweden (0.3%, $26.8B). (Note: Crane Data attributes Treasury and Government repo to the dealer's parent country of origin, though money funds themselves "look-through" and consider these U.S. government securities. All money market securities must be U.S. dollar-denominated.)
As of May 31, 2026, Taxable money funds held 46.1% (down from 46.9%) of their assets in securities maturing Overnight, and another 10.5% maturing in 2-7 days (down from 11.0%). Thus, 56.6% in total matures in 1-7 days. Another 11.6% matures in 8-30 days, while 10.8% matures in 31-60 days. Note that over three-quarters, or 78.9% of securities, mature in 60 days or less, the dividing line for use of amortized cost accounting under SEC regulations. The next bucket, 61-90 days, holds 5.5% of taxable securities, while 9.1% matures in 91-180 days, and just 6.5% matures beyond 181 days.
Crane Data's latest monthly Money Fund Portfolio Holdings statistics will be sent out Tuesday, and we'll be writing our regular monthly update on the new May data for Wednesday's News. But we also already uploaded a separate and broader Portfolio Holdings data set based on the SEC's Form N-MFP filings on Monday. (We continue to merge the two series, and the N-MFP version is now available via our Portfolio Holdings file listings to Money Fund Wisdom subscribers.) Our new N-MFP summary, with data as of May 31, includes holdings information from 1,000 money funds (up 7 from last month), representing assets of $8.365 trillion (up from $8.131 trillion a month ago). Prime MMFs rose to $1.238 trillion (up from $1.227 trillion), or 14.8% of the total. We review the new N-MFP data and we also look at our revised MMF expense data, which shows charged expenses were mostly flat and money fund revenues rose to $21.8 billion (annualized) in May.
Our latest Form N-MFP Summary for All Funds (taxable and tax-exempt) shows Treasuries and Repurchase Agreements (Repo) remain the largest types of portfolio holdings in money market funds. Treasury holdings in money market funds now total $3.352 trillion (up from $3.155 trillion), or 40.1% of all assets, while Repo holdings rose to $2.999 trillion (up from $2.981 trillion), or 35.9% of all holdings. Government Agency securities total $1.190 trillion (up from $1.185 trillion), or 14.2%. Holdings of Treasuries, Government agencies and Repo (almost all of which is backed by Treasuries and agencies) combined total $7.541 trillion, or a massive 90.1% of all holdings.
The Other category (primarily Time Deposits) totals $161.8 billion (up from $160.7 billion), or 1.9%, and Commercial Paper (CP) totals $307.9 billion (up from $296.7 billion), or 3.7% of all holdings. Certificates of Deposit (CDs) total $202.9 billion (up from $202.3 billion), 2.4%, and VRDNs account for $151.4 billion (up from $149.7 billion), or 1.8% of money fund securities.
Broken out into the SEC's more detailed categories, the CP totals were comprised of: $174.7 billion, or 2.1%, in Financial Company Commercial Paper; $93.1 billion, or 1.1%, in Asset Backed Commercial Paper; and $40.1 billion, or 0.5%, in Non-Financial Company Commercial Paper. The Repo totals were made up of: U.S. Treasury Repo ($1.873 trillion, or 22.4%), U.S. Govt Agency Repo ($967.9 billion, or 11.6%) and Other Repo ($158.4 billion, or 1.9%).
The N-MFP Holdings summary for the Prime Money Market Funds shows: CP holdings of $258.8 billion (up from $248.6 billion), or 20.9%; Repo holdings of $481.3 billion (down from $488.0 billion), or 38.9%; Treasury holdings of $190.1 billion (up from $181.8 billion), or 15.4%; CD holdings of $174.8 billion (up from $174.3 billion), or 14.1%; Other (primarily Time Deposits) holdings of $113.0 billion (up from $112.9 billion), or 9.1%; Government Agency holdings of $7.5 billion (down from $9.1 billion), or 0.6%; and VRDN holdings of $12.7 billion (up from $12.5 billion), or 1.0%.
The SEC's more detailed categories show CP in Prime MMFs made up of: $156.5 billion (up from $151.4 billion), or 12.6%, in Financial Company Commercial Paper; $76.2 billion (up from $72.3 billion), or 6.2%, in Asset Backed Commercial Paper; and $26.0 billion (up from $24.9 billion), or 2.1%, in Non-Financial Company Commercial Paper. The Repo totals include: U.S. Treasury Repo ($174.7 billion, or 14.1%), U.S. Govt Agency Repo ($167.2 billion, or 13.5%), and Other Repo ($139.4 billion, or 11.3%).
In related news, money fund charged expense ratios (Exp%) were mostly flat in May. Our Crane 100 Money Fund Index and Crane Money Fund Average were 0.26% and 0.36%, respectively, as of May 31, 2026. Crane Data revises its monthly expense data and gross yield information after the SEC updates its latest Form N-MFP data the morning of the 6th business day of the new month. (They posted this info Monday morning, so we revised our monthly MFI XLS spreadsheet and historical craneindexes.xlsx averages file to reflect the latest expenses, gross yields, portfolio composition and maturity breakout.) Visit our "Content" page for the latest files.
Our Crane 100 Money Fund Index, a simple average of the 100 largest taxable money funds, shows an average charged expense ratio of 0.26% unchanged from last month's level (also 18 bps higher than 12/31/21's 0.08%). The Crane Money Fund Average, a simple average of all taxable MMFs, showed a charged expense ratio of 0.36% as of May 31, 2026, unchanged from the month prior and slightly below the 0.40% at year-end 2019.
Crane Data's latest monthly Money Fund Market Share rankings show assets sharply higher among the largest U.S. money fund complexes in May, after declining in April. Assets have increased in 20 of the past 23 months (April 2025, March 2026 and April 2026 saw declines). Money market fund assets rose by $193.2 billion, or 2.4%, last month to a record $8.292 trillion. Total MMF assets increased by $42.2 billion, or 0.5%, over the past 3 months, and they've increased by $878.3 billion, or 11.8%, over the past 12 months. The largest increases among the 25 largest managers last month were seen by Fidelity, JPMorgan, Vanguard, SSIM and American Funds, which grew assets by $37.7 billion, $36.7B, $30.2B, $29.6B and $14.2B, respectively. Declines in May were seen by T Rowe Price, Goldman Sachs, Allspring, HSBC and DWS, which decreased by $5.2 billion, $4.8B, $4.5B, $3.1B and $2.8B, respectively. Our domestic U.S. "Family" rankings are available in our MFI XLS product, our global rankings are available in our MFI International product. The combined "Family & Global Rankings" are available to Money Fund Wisdom subscribers. We review the latest market share totals, and look at money fund yields, which were slightly lower in May.
Over the past year through May 31, 2026, Fidelity (up $184.0B, or 12.0%), JPMorgan (up $145.8B, or 18.7%), BlackRock (up $85.0B, or 13.4%), Vanguard (up $83.8B, or 12.1%) and SSIM (up $77.3B, or 31.2%) were the largest gainers. Fidelity, Vanguard, BNY Dreyfus, BlackRock and JPMorgan had the largest asset increases over the past 3 months, rising by $30.2B, $20.1B, $15.6B, $13.3B and $12.3B, respectively. The largest decline over 12 months was seen by: American Funds (down $10.1B), T Rowe Price (down $9.4B), DWS (down $5.5B) and Invesco (down $5.1B). The largest declines over 3 months included: Goldman Sachs (down $28.7B), Federated Hermes (down $15.7B), T Rowe Price (down $9.0B), Allspring (down $8.3B) and UBS (down $5.9B).
Our latest domestic U.S. Money Fund Family Rankings show that Fidelity Investments remains the largest money fund manager with $1.714 trillion, or 20.7% of all assets. Fidelity was up $37.7B in May, up $30.2B over 3 mos., and up $184.0B over 12 months. JPMorgan ranked second with $923.6 billion, or 11.1% market share (up $36.7B, up $12.3B and up $145.8B for the past 1-month, 3-mos. and 12-mos., respectively). Vanguard ranked in third place with $778.7 billion, or 9.4% of assets (up $30.2B, up $20.1B and up $83.8B). BlackRock ranked fourth with $719.5 billion, or 8.7% market share (up $11.0B, up $13.3B and up $85.0B), while Schwab was the fifth largest MMF manager with $693.2 billion, or 8.4% of assets (up $6.5B, down $2.3B and up $47.8B for the past 1-month, 3-mos. and 12-mos.).
Federated Hermes was in sixth place with $514.2 billion, or 6.2% (up $4.9B, down $15.7B and up $33.5B), while Goldman Sachs was in seventh place with $454.0 billion, or 5.5% of assets (down $4.8B, down $28.7B and up $28.0B). BNY Dreyfus ($355.4B, or 4.3%) was in eighth place (up $14.0B, up $15.6B and up $63.4B), followed by Morgan Stanley ($349.7B, or 4.2%; up $7.7B, up $11.2B and up $68.0B). SSIM was in 10th place ($324.8B, or 3.9%; up $29.6B, up $11.0B and up $77.3B).
The 11th through 20th-largest U.S. money fund managers (in order) include: Allspring ($220.2B, or 2.7%), Northern ($206.9B, or 2.5%), First American ($202.0B, or 2.4%), American Funds ($168.3B, or 2.0%), Invesco ($163.3B, or 2.0%), UBS ($118.3B, or 1.4%), Franklin Templeton ($48.9B, or 0.6%), HSBC ($48.3B, or 0.6%), T Rowe Price ($46.2B, or 0.6%) and DWS ($38.4B, or 0.5%). Crane Data currently tracks 64 U.S. MMF managers, unchanged from last month.
When European and "offshore" money fund assets -- those domiciled in places like Ireland, Luxembourg and the Cayman Islands -- are included, the top 10 managers are the same as the domestic list, except: BlackRock moves up to the No. 3 spot and Vanguard moves down to the No. 4 spot. Goldman Sachs moves up to the No. 6 spot, while Federated Hermes moves down to the No. 7 spot. Morgan Stanley moves up to the No. 8 spot while BNY Dreyfus moves down to the No. 9 spot. Global Money Fund Manager Rankings include the combined market share assets of our MFI XLS (domestic U.S.) and our MFI International ("offshore") products.
The largest Global money market fund families include: Fidelity ($1.739 trillion), JP Morgan ($1.221 trillion), BlackRock ($1.085 trillion), Vanguard ($778.7B) and Schwab ($693.2B). Goldman Sachs ($619.5B) was in sixth, Federated Hermes ($528.8B) was seventh, followed by Morgan Stanley ($461.0B), Dreyfus/BNY ($422.1B) and SSIM ($382.7B), which round out the top 10. These totals include "offshore" U.S. Dollar money funds, as well as Euro and Pound Sterling (GBP) funds converted into U.S. dollar totals.
The June issue of our Money Fund Intelligence and MFI XLS, with data as of 5/31/26, shows that yields were down in May across some of the Crane Money Fund Indexes. The Crane Money Fund Average, which includes all taxable funds covered by Crane Data (currently 749), was 3.34% (down 2 bps) for the 7-Day Yield (annualized, net) Average, the 30-Day Yield was down 7 bps to 3.29%. The MFA's Gross 7-Day Yield was at 3.73% (down 3 bps), and the Gross 30-Day Yield was down 7 bps at 3.65%. (Gross yields will be revised once we download the SEC's Form N-MFP data for 5/31/26 on Monday.)
Our Crane 100 Money Fund Index shows an average 7-Day (Net) Yield of 3.45% (down 3 bps) and an average 30-Day Yield at 3.37% (down 9 bps). The Crane 100 shows a Gross 7-Day Yield of 3.71% (down 3 bps), and a Gross 30-Day Yield of 3.64% (down 9 bps). Our Prime Institutional MF Index (7-day) yielded 3.58% (down 2 bps) as of May 31. The Crane Govt Inst Index was at 3.43% (down 3 bps) and the Treasury Inst Index was at 3.42% (down 2 bps). Thus, the spread between Prime funds and Treasury funds is 16 basis points, and the spread between Prime funds and Govt funds is 15 basis points. The Crane Prime Retail Index yielded 3.34% (down 3 bps), while the Govt Retail Index was 3.16% (down 2 bps), the Treasury Retail Index was 3.18% (down 1 bp from the month prior). The Crane Tax Exempt MF Index yielded 1.56% (down 137 bps) at the end of May.
Gross 7-Day Yields for these indexes to end May were: Prime Inst 3.81% (down 2 bps), Govt Inst 3.68% (down 3 bps), Treasury Inst 3.69% (down 2 bps), Prime Retail 3.81% (down 3 bps), Govt Retail 3.68% (down 3 bps) and Treasury Retail 3.69% (down 2 bps). The Crane Tax Exempt Index fell to 1.95% (down 137 bps). The Crane 100 MF Index returned on average 0.30% over 1-month, 0.88% over 3-months, 1.42% YTD, 3.83% over the past 1-year, 4.58% over 3-years annualized), 3.36% over 5-years, and 2.16% over 10-years.
The total number of funds, including taxable and tax-exempt, was up 5 in May at 860. There are currently 749 taxable funds, up 5 from the previous month, and 111 tax-exempt money funds (unchanged from last month). (Contact us if you'd like to see our latest MFI XLS, Crane Indexes or Market Share report.)
The June issue of our flagship Money Fund Intelligence newsletter, which was sent to subscribers Friday morning, features the articles: "Money Fund Assets Resume Record Run; Yields Bottom," which reviews the latest jump in assets and flattening of yields; "BNY, JPM, BlackRock Launch 'OnChain' Tokenized MMFs," which discusses the latest money fund filings; and "European Regulators Push to Increase MF Liquidity Levels," which covers new U.K. and European proposals to strengthen MMF requirements. We also sent out our MFI XLS spreadsheet Friday a.m., and we've updated our Money Fund Wisdom database with 5/31/26 data. Our June Money Fund Portfolio Holdings are scheduled to ship on Tuesday, June 9, and our June Bond Fund Intelligence is scheduled to go out on Friday, June 12. (Note: Register ASAP for our upcoming Money Fund Symposium, which will take place later this month -- June 24-26 in Jersey City, NJ!)
MFI's "Money Fund Assets" story says, "Money fund assets rebounded strongly in May, rising $193.2 billion to a record $8.292 trillion, according to our Money Fund Intelligence XLS data series. Our Money Fund Intelligence Daily shows money fund assets have increased by another $54.2 billion to $8.346 trillion month-to-date in June (as of 6/4)."
It continues, "According to MFI Daily, assets fell by $108.8 billion in April and $49.3 billion in March. But they increased $99.5 billion in February, $32.9 billion in January, $126.3 billion in December and $132.8 billion in November. MMFs rose $142.1 billion in October, $105.2 billion in September and $132.0 billion in August. They rose $63.7 billion in July and $6.7 billion last June."
We write in our "OnChain" article, "BNY Dreyfus filed to launch an 'onchain' tokenized money market fund, while J.P. Morgan recently went live with its OnChain Liquidity-Token MMF. The SEC filing for BNY Dreyfus On-Chain Liquidity Fund, under the Dreyfus Government Cash Management Funds umbrella, says, 'The fund seeks as high a level of current income as is consistent with the preservation of capital and the maintenance of liquidity."
The story continues, "The fund pursues its investment objective by investing in (i) U.S. Treasury bills, notes, or bonds ..., (ii) overnight repurchase agreements collateralized solely by U.S. Treasury securities and/or cash, and (iii) cash. The fund is a money market fund subject to the maturity, quality, liquidity and diversification requirements of Rule 2a-7 under the Investment Company Act of 1940, as amended, and seeks to maintain a stable share price of $1.00. The U.S. Treasury securities in which the fund invests have a remaining maturity of 93 days or less or are issued with a maturity of 93 days or less.'"
Our "European" story says, "The Financial Conduct Authority (FCA), which regulates markets in the U.K., published a policy paper titled, 'Reforms to Money Market Fund Regulations.' It states, 'Money market funds (MMFs) play an important role in the financial system. MMFs are widely used for cash management and provide an alternative or complement to bank deposits for a broad range of investors, including asset managers, insurers, pension funds, large corporates and local authorities. However, recent periods of market stress have highlighted the need to strengthen the resilience of these funds. The Government, together with the Financial Conduct Authority (FCA) and the Bank of England, have worked actively with international partners, including with the European Commission and at the Financial Stability Board, to enhance MMF resilience so these funds are better able to withstand market disruption.'"
It continues, "The post explains, 'As part of this, the Government and FCA committed to reforming the UK Money Market Fund Regulation (MMFR) regime, to ensure the UK’s regulatory framework appropriately supports the resilience of these markets while maintaining our international competitiveness. These reforms mark an important step forward in enhancing the resilience of the wider non-bank financial sector.'"
MFI also includes the News brief, "Bloomberg: 'Dash for Cash Sends Money-Fund Assets to Record $8.3 Trillion.' The article states, 'Investors boosted the total amount in U.S. money-market funds to a record $8.281 trillion as uncertainty surrounding the Federal Reserve's monetary policy path fuels demand for cash-like assets. Some $66 billion rushed into the money-market fund industry in the week ending May 28, according to the latest figures from Crane Data LLC.'"
Another News brief, "Barron's Writes Again on Sweeps," tells us, "The article, 'How AI Could Kill Charles Schwab and the Brokerage Industry's Cash Cow,' says, 'Charles Schwab spent a good chunk of its six-hour-long investor day ... explaining to analysts and shareholders how the company is using artificial intelligence to boost its business. Investors, however, are far more focused on whether AI poses a threat to the substantial profits Schwab derives from so-called sweep cash.'"
A third News brief, "Dreyfus Rebrands as BNY Dreyfus," tells us, "A statement, '`BNY Investments Dreyfus Money Market Rebrand,' says, 'Effective May 29, 2026, Dreyfus money market funds will update names, adding ‘BNY’ to recognize the depth of expertise, technology and history brought by Dreyfus as a vital component of the BNY ecosystem. These are part of the BNY Investments Dreyfus family of funds.' (See also, 'Introducing SPARK Future Shares: A New Way to Align Cash with Client Values.')"
A sidebar, "New UBS Stablecoin Reserves," says, "A filing for the UBS Liquid Reserves Fund explains, 'The fund invests only in certain eligible reserve assets that payment stablecoin issuers are permitted to maintain under the Guiding and Establishing National Innovation for US Stablecoins Act (the 'GENIUS Act') and any regulations adopted thereunder. These eligible reserve assets include ... cash, securities issued by the US Treasury with a remaining maturity of 93 days or less ... and overnight repurchase agreements.... The fund primarily intends to serve as a reserve asset for stablecoin issuers.... Shares of the fund are expected to be held primarily by one or more stablecoin issuers as all or a portion of the reserve assets that back the outstanding stablecoins issued to their customers.'"
Our June MFI XLS, with May 31 data, shows total assets jumping $193.2 billion to $8.292 trillion, after decreasing $102.1 billion in April, $56.6 billion in March, increasing $94.0 billion in February, $38.5 billion in January, $123.5 billion in December, $129.3 billion in November, $141.5 billion in October, $100.4 billion in September, $129.9 billion in August, $69.0 billion in July, and $10.1 billion last June.
Our broad Crane Money Fund Average 7-Day Yield was down 3 bps at 3.34%, and our Crane 100 Money Fund Index (the 100 largest taxable funds) was down 2 bps at 3.45% in May. On a Gross Yield Basis (7-Day) (before expenses are taken out), the Crane MFA and the Crane 100 averaged 3.70% and 3.71%. Charged Expenses averaged 0.36% and 0.26% for the Crane MFA and the Crane 100. (We'll revise expenses once we upload the SEC's Form N-MFP data for 5/31/26 on Monday, 6/8.) The average WAM (weighted average maturity) for the Crane MFA was 42 days (unchanged) and the Crane 100 WAM was unchanged from the previous month at 44 days. (See our Crane Index or craneindexes.xlsx history file for more on our averages.)
The European Central Bank's (ECB) Isabel Schnabel recently gave a speech titled "From Money Market Funds to Stablecoins: Lessons for Central Banks," which discussed the history and parallels of money market mutual funds with stablecoins. She says, "The nature of money has never been static. Over the centuries, financial innovation has reshaped how money is created, transferred and stored, often enhancing efficiency, broadening access and boosting economic welfare. When such innovations reach scale, they alter the structure of the financial system, with consequences for financial stability, monetary policy and the international monetary order. One recent innovation has been stablecoins. These are privately issued digital tokens pegged to fiat currencies and typically backed by portfolios of traditional assets. Their rapid rise has raised questions about their benefits and challenges. To understand the unfolding changes, it is worth looking at how earlier innovations transformed financial markets." (Note: Register soon for our upcoming Money Fund Symposium, which takes place in just 3 weeks in Jersey City, N.J., June 24-26. We look forward to seeing you later this month!)
Schnabel explains, "More recently, a private and closer analogue of stablecoins emerged: money market funds. These created a highly liquid investment instrument that offered a market-based yield while promising a stable value, reshaping financial intermediation. In my remarks today, I will examine the parallels and differences between the emergence of money market funds and that of stablecoins to provide a perspective on the challenges posed by stablecoins and other forms of tokenisation for today's financial system."
She continues, "I will argue that private monetary innovation can offer significant benefits. But I will also show that it can heighten financial stability risks, affect monetary policy transmission and alter the international monetary order. Central banks and regulators need to be ready to adapt regulation, monetary policy implementation and payment infrastructure in an agile manner to safeguard financial stability, preserve monetary control and anchor their currency's role in the digital age."
Discussing "The rise of money market funds," she comments, "The emergence of money market funds in the 1970s was initially a distinct US phenomenon, driven by regulation and the macroeconomic environment. The key backdrop was Regulation Q, introduced in the aftermath of the Great Depression, which imposed interest rate ceilings on bank deposits in order to contain 'excess competition' among banks. As higher inflation gave rise to higher market interest rates, investors sought liquid alternatives delivering higher yields."
Schnabel states, "Money market funds met this demand by investing in a diversified portfolio of high-quality, short-term market instruments, while aiming to maintain a stable net asset value and promising redemption at or near par. In doing so, they replicated some of the key attributes of bank deposits, most notably stability of value and liquidity."
She tells us, "Over time, money market funds became central actors in wholesale funding markets and major buyers of short-term financial instruments, such as commercial paper, repurchase agreements and Treasury bills. The rise of money market funds in the United States led to some bank disintermediation as savings migrated from bank deposits into money market funds.... As a result, banks increasingly shifted towards wholesale funding, such as repos and other market-based sources, making part of their funding more short-term, expensive and volatile."
The ECB Executive Board Member states, "At the same time, money market funds benefited the financial system and the economy more broadly. Governments enjoyed access to a wider and more diversified investor base for short-term sovereign debt, while financial intermediation shifted away from banks towards capital markets, contributing to the expansion of market-based finance."
She comments, "While the first money market funds in Europe were established in the early 1980s, it was not until the 1990s that they really took off. They have since become an integral part of the euro area financial system. By increasing competition for savings and offering households and firms attractive alternatives to bank deposits, money market funds made it harder for banks to extract excess rents in protected deposit markets. Evidence from Germany suggests that the authorisation of money market funds in 1994 led to more intense competition in deposit markets, as evident in a visible decline in bank deposit margins around that time. Thus, the advent of money market funds offered benefits to investors in the form of higher returns and greater choice, while financial markets became deeper and more diversified."
She then says, "Stablecoins share several features with money market funds. Both invest in a portfolio of short-term safe assets and aim to offer redemption at or near par into fiat currency. And both operate outside the traditional banking system, thereby potentially contributing to the disintermediation of banks. But there are also important differences, especially in terms of remuneration and use cases. The attractiveness of money market funds has traditionally rested on their ability to offer competitive market yields. Stablecoins, by contrast, do not generally pay interest, at least not directly. Stablecoins do not therefore constitute an attractive store of value, compared with money market funds or remunerated bank deposits."
Schnabel adds, "And yet, this has done little to curb demand. Global stablecoin market capitalisation has increased swiftly and is now close to USD 300 billion, although growth has moderated recently. The two largest US dollar-denominated stablecoins, Tether (USDT) and USD Coin (USDC), account for roughly 90% of the total market. Euro-denominated stablecoins have so far played only a marginal role, with a combined market capitalisation of approximately EUR 500 million."
She tells us, "So far, stablecoins have primarily been used to settle transactions in crypto markets, with crypto trading remaining the dominant use case by far. Other use cases account for only a small share of current activity, but they are expected to grow over time, although there remains a high degree of uncertainty about their future trajectory. Around 85% of the transaction volume on crypto trading platforms involves exchanges between stablecoins and other crypto-assets, even though other types of transactions are gaining ground."
Schnabel continues, "The second fragility relates to the risk that money market funds, or stablecoins for that matter, may face runs themselves. This risk became evident during the global financial crisis, which exposed the vulnerability of money market funds to runs and the lack of a safety net to mitigate systemic risks. After the failure of Lehman Brothers in September 2008, the Reserve Primary Fund 'broke the buck,' meaning that its net asset value fell below par, triggering widespread redemptions, fire sales and a freeze in short-term funding markets. We have seen money market funds come under stress on several further occasions in recent years, such as during the European sovereign debt crisis and, more recently, at the onset of the COVID-19 pandemic."
She says, "Finally, unremunerated stablecoins, if systemically relevant, could reinforce the zero lower bound constraint on the policy rate, as negative interest rates could render stablecoins' business model unprofitable, leading to a collapse of the market. In fact, the significance of the money market fund industry in the United States likely contributed to the Federal Reserve shying away from negative interest rates.... As with the rise of money market funds, the dollar's dominance would be reinforced, not necessarily owing to stronger economic fundamentals but due to network effects, scale and first-mover advantages."
Schnabel adds, "It remains to be seen whether, in such an environment, stablecoins can find their place in the financial system just as money market funds did 50 years ago, or whether other innovations, like tokenised deposits, will prove to be the more promising alternative. In any case, as shown by the example of money market funds, innovation alone is not sufficient to guarantee lasting success. We also need to provide guardrails to preserve financial stability, monetary policy transmission and the international role of the euro."
A statement titled, "BNY Investments Dreyfus Money Market Rebrand," explains, "Effective May 29, 2026, Dreyfus money market funds will update names, adding 'BNY' to recognize the depth of expertise, technology and history brought by Dreyfus as a vital component of the BNY ecosystem. These are part of the BNY Investments Dreyfus family of funds, which are advised by BNY Mellon Investment Adviser, Inc. and sub-advised by Dreyfus. Tickers, Cusips and access stay the same with no action needed." (See the SEC filing here. Crane Data will be renaming the funds in its June issue of Money Fund Intelligence, which ships on Friday.)
Separately, BNY Investments also sent out the comment, "Introducing SPARK Future Shares: A New Way to Align Cash with Client Values," that states, "Your clients want to make a difference, and many are looking for more than a financial return on their investments. Simply put, investors increasingly want to 'do well and do good.' Announcing the launch of SPARK Future shares (SPFXX), a new share class of our flagship BNY Dreyfus Government Cash Management, enabling your clients to invest in a high-quality cash management strategy while supporting a nonprofit organization of their choice." (See the filing for SPFXX here.)
The fund features a "Government cash management strategy with institutional knowledge." It's "Accessible through intermediaries, including advisors and broker-dealers," and says, "10% of BNY's net revenue donated annually to client-selected nonprofits." They add, "We invite you to learn more and explore how SPARK Future shares can enhance your client portfolios, or contact us for additional information."
The footnotes tell us, "BNY Mellon Investment Adviser, Inc. (BNYIA) will make an annual donation to charitable and other not-for-profit organizations that are selected by holders of SPARK Future shares (Donation). The organization(s) selected by the shareholder for the Donation must be tax-exempt pursuant to section 501(c)(3) under the Internal Revenue Code of 1986, as amended, and determined by BNY to be eligible (Eligible Organizations). The Donation will be based on an amount representing 10% of BNYIA's net revenue attributable to the fund's SPARK Future shares. 'Net revenue' represents the management fee paid by the fund to BNYIA, after any fee waivers and/or expense reimbursements by BNYIA, with respect to SPARK Future shares, and will be paid from BNYIA's own past profits."
In other news, a press release titled, "Franklin Templeton and MoonPay Partner to Expand Institutional Access to Tokenized Money Market Funds," states, "Franklin Templeton and MoonPay ... announced a strategic partnership to make tokenized financial products more accessible and usable across the onchain financial ecosystem. The initial integration connects `Franklin Templeton's Benji Technology Platform with MoonPay Trade's institutional trading infrastructure, allowing eligible institutional users to move between supported stablecoins and Franklin Templeton tokenized money market fund exposure through a fully onchain execution experience. Adding BENJI to MoonPay Trade serves as one of MoonPay's first expansions beyond crypto, fiat, and stablecoins, introducing a new use case at the intersection of stablecoins, tokenized funds, and onchain capital markets."
It tells us, "By using MoonPay Trade's existing quote, routing, execution, and network, the partnership is designed to make Franklin Templeton's tokenized money market fund suite easier to use across institutional onchain workflows. For existing holders, it creates another pathway back into stablecoin liquidity, supporting greater flexibility across onchain treasury, liquidity management, portfolio rebalancing, and collateral-adjacent use cases."
Sandy Kaul, Head of Innovation and Digital Assets at Franklin Templeton, comments, "Tokenized money market funds only become more useful when they can move with the speed and programmability of the broader digital asset ecosystem. For us, leadership in this space means doing the work to make that unlock possible, and teaming up with MoonPay creates another trusted gateway for institutions to move between stablecoin liquidity and tokenized fund exposure."
The release continues, "The partnership also builds on Franklin Templeton's long-standing commitment to developing regulated, blockchain-enabled investment solutions and expanding their utility within institutional workflows, while marking an important step in MoonPay Trade's expansion into tokenized finance and real-world asset infrastructure.... This partnership is expected to serve as the foundation for a broader strategic relationship between Franklin Templeton and MoonPay, focused on expanding trusted access to onchain financial markets."
Caroline Pham, CEO of MoonPay Institutional, adds, "Digital assets like tokenized money market funds provide benefits like improved liquidity and capital efficiency, but only if institutions have access to the onchain financial ecosystem. MoonPay's strategic partnership with Franklin Templeton on liquidity and collateral solutions showcases the latest innovations driving institutional adoption of digital assets."
Finally, Fitch Ratings recently published "U.S. Money Market Funds Monitor: 1Q26," which tells us, "Total taxable money market fund (MMF) assets increased by $88.9 billion from December 31, 2025, to March 31, 2026, reaching $8.04 trillion, according to Crane Data. However, quarter-end assets were down from an intra-quarter high of approximately $8.12 trillion on March 10, driven primarily by the corporate tax date in the U.S. Over the quarter, Government MMFs gained $31.0 billion in assets, Treasury MMFs gained $25.7 billion, and Prime MMFs gained $32.3 billion."
It continues, "Taxable MMFs increased exposure to Agencies by $86.0 billion during the quarter, while Treasury and Repo exposures dropped by $110.9 billion and $59.5 billion, respectively. The change was primarily driven by robust US agency issuance in the market reaching $418.8 billion through March 2026, representing a 9.4% increase year over year for the quarter according to SIFMA. However, within Prime MMFs, allocations shifted further into direct Treasury exposure, increasing by approximately $50.9 billion (42% from 4Q25) over the quarter to $172.5 billion. The 1Q26 Treasury exposure within Prime MMFs represents a significant increase of $109.4 billion, approximately 173%, from a 1Q25 exposure of $63.1 billion."
Fitch adds, "As of March 31, 2026, institutional government and prime MMF net yields were 3.47% and 3.59%, respectively, down 12 bps and 10 bps from the prior quarter. The Fed's three rate cuts in late 2025 drove the decline by lowering front-end rates and pressuring reinvestment yields through 1Q26. WAM and WAL edged modestly higher as managers repositioned portfolios with expectations of delays in Fed cuts, while preserving liquidity. The Fed maintained its policy rate during the quarter, as elevated inflation and economic uncertainty continued to influence market expectations."
Barron's writes again on Sweeps and AI in "How AI Could Kill Charles Schwab and the Brokerage Industry's Cash Cow." The article says, "Charles Schwab spent a good chunk of its six-hour-long investor day on May 14 explaining to analysts and shareholders how the company is using artificial intelligence to boost its business. Investors, however, are far more focused on whether AI poses a threat to the substantial profits Schwab derives from so-called sweep cash, the money that clients hold in brokerage accounts that earn almost no interest. AI could change that equation by powering tools that allow investors to automatically move idle cash from their brokerage account to money-market funds or other higher-yielding accounts that are far less profitable for Schwab, as well as other brokerages that derive profits from customers' cash."
They explain, "The AI threat more broadly -- that customers would migrate from traditional financial services to AI start-ups—has been weighing on shares of Schwab, LPL Financial, Raymond James Financial, and Ameriprise Financial this year despite generally strong earnings growth. But the cash sweep issue is particularly nettlesome."
Barron's writes, "JPMorgan Chase, the nation's largest bank, kicked off the latest round of hand-wringing in April when it disclosed that it is developing an AI-powered tool that would help customers automatically move money from their checking or savings accounts to higher-yielding options. Schwab currently pays customers just 0.01% in interest on cash held in sweep accounts. Large money-market funds pay an average of 3.44%, according to Crane Data."
They state, "Analysts estimate that profits from sweep accounts contribute to a sizable chunk of profits, although amounts vary, totaling from 40% to 100% of firmwide pre-provision net revenue -- that is, earnings before setting aside funds for loan defaults or credit losses, according to Wolfe Research analyst Steven Chubak."
The piece continues, "At Schwab, which operates a bank, sweep cash contributes to bank deposit account fees and net interest income, which is the difference between the interest paid to customers on their deposits and what the company earns on interest-bearing assets such as fixed-income securities and loans. Almost half of Schwab's $6.5 billion in total revenue for the first quarter came from net interest income. Put another way, that's more than 100% of Schwab’s reported first-quarter net income of $2.5 billion."
It tells us, "Then there is LPL. It doesn't operate a bank; instead, it places customer deposits with partner banks that pay LPL a fee. Revenue generated from client cash -- including sweep accounts and money-market accounts -- came to $1.66 billion for 2025, according to the company's annual report."
Barron's comments, "Details about JPMorgan's forthcoming cash optimization tool are hazy, and a spokesman declined to provide more information. But other firms could easily develop their own, creating competitive pressure to add one. During his investor day presentation, Schwab CEO Rick Wurster said the company doesn't plan to offer its own cash optimization tool, noting that clients can already move money from sweep accounts to a variety of higher-paying options such as money-market funds. The company also said strong lending activity this year can support net interest margin growth."
They add, "On recent first-quarter earnings calls, other CEOs have also played down the AI threat to cash profits. LPL CEO Rich Steinmeier said he didn't see 'an imminent risk.' Raymond James CEO Paul Shoukry said it wasn't much more than 'an incremental threat,' and more a concern for online brokerage firms than for companies like his, where the client has a relationship with a financial advisor."
For more on AI and cash sweeps, see our recent Crane Data News stories: "LPL Sees No AI Risk of Cash Sorting" (5/4/26), "Raymond James Call Responds to 'Agentic AI Cash Sweep Optimization'" (4/24/26), "Barron's on Schwab AI Sweeps Worries" (4/21/26), "Earnings: JP Morgan Talks AI Cash Allocation Tool; BNY on Tokenization" (4/20/26), "Schwab Says AI a Tailwind, Not a Threat to Cash Sweeps on Q1 Update" (4/17) and "Morgan Stanley Q1 Call: AI & Sweeps" (4/16).
In related news, money fund yields (7-day, annualized, simple, net) were up 2 basis points to 3.44% on average during the week ended Friday, May 29 (as measured by our Crane 100 Money Fund Index), after decreasing two bps the week prior. Fund yields hadn't been below 3.5% since November 2022, and they are down from a recent high of 5.20% in November 2023. They should remain flat in coming days (and weeks) since the Fed left short-term rates unchanged five weeks ago. Yields were 3.47% on 4/30/26 and 3/31/26, 3.49% on 2/28/26, 3.50% on 1/31/26, 3.58% on 12/31/25, 3.78% on 11/30, 3.90% on 10/31, 3.94% on 9/30, 4.11% on 8/31, 4.12% on 7/31, 4.13% on 6/30, 4.14% on 3/31/25 and 4.28% on average on 12/31/24. MMFs averaged 4.75% on 9/30/24, 5.10% on 6/28/24, 5.14% on 3/31/24 and 5.20% on 12/31/23.
The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 710), shows a 7-day yield of 3.35%, up 3 bps in the week through Friday. Prime Inst money fund yields were up 3 bps at 3.58% in the latest week. Government Inst MFs were up 4 bps at 3.44%. Treasury Inst MFs were up 2 bps at 3.41%. Treasury Retail MFs currently yield 3.18%, Government Retail MFs yield 3.16% and Prime Retail MFs yield 3.35%, Tax-exempt MF 7-day yields were down 14 bps to 1.56%.
Money market mutual fund assets have now hit an all-time record high of $8.292 trillion on May 29, the previous record of $8.281 trillion was seen the day before (5/28), and prior to that, $8.280 trillion on March 18, according to our Money Fund Intelligence Daily. Assets have jumped $84.8 billion in the week through Friday, and they've increased by $208.6 billion in May month-to-date (through 5/29). MMF assets decreased by $108.8 billion in April, $49.3 billion in March, increased by $99.5 billion in February, $32.9 billion in January, $126.3 billion in December, $132.8 billion in November, $142.1 billion in October, $105.2 billion in September and $132.0 billion in August. They rose by $63.7 billion in July, $6.7 billion in June and $100.9 billion last May. Weighted average maturities were at 42 days for the Crane MFA and 44 days the Crane 100 Money Fund Index.
According to Monday's Money Fund Intelligence Daily, with data as of Friday (5/29), just 177 money funds (out of 821 total) yield under 3.0% with $231.1 billion in assets, or 2.8%, while the vast majority (644) of funds yield between 3.00% and 3.99% ($8.061 trillion, or 97.2%). No funds yield over 4.0%.
Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.29%, after falling 1 bp the week prior. The latest Brokerage Sweep Intelligence, with data as of May 29, shows no changes over the past week. Four of the 10 major brokerages tracked by our BSI offer rates of 0.01% for balances of $100K (and lower tiers). These include: E*Trade, Merrill Lynch, Morgan Stanley and Schwab.
The U.S. Securities and Exchange Commission published its latest monthly "Money Market Fund Statistics" summary, which shows that total money fund assets decreased by $102.3 billion in April 2026 to $8.188 trillion, after falling to $8.290 trillion the month prior and hitting a record high $8.341 trillion two months prior. The SEC shows Prime MMFs decreased $26.2 billion in April to $1.356 trillion, Govt & Treasury funds decreased $75.9 billion to $6.680 trillion and Tax Exempt funds decreased $0.3 billion to $151.6 billion. Taxable yields were mixed in April, while Tax Exempt MMFs yields were higher. The SEC's Division of Investment Management summarizes monthly Form N-MFP data and includes asset totals and averages for yields, liquidity levels, WAMs, WALs, holdings, and other money market fund trends. We review their latest numbers below. (Our MFI XLS monthly shows money fund assets decreasing $99.0 billion in April 2026 to $8.099 trillion. In May month-to-date through 5/28, total money fund assets have increased by $197.6 billion to a record high $8.281 trillion, according to Crane Data's separate, and slightly smaller, MFI Daily series.)
April's asset decrease follows a decrease of $50.7 billion in March, an increase of $123.7 billion in February, $36.6 billion in January, $125.0 billion in December, $125.1 billion in November, $153.2 billion in October, $106.0 billion in September, $138.0 billion in August, $60.2 billion in July, $4.3 billion in June, $94.9 billion in May and a decrease of $17.5 billion last April. Over the 12 months through 4/30/26, total MMF assets have increased by $814.1 billion, or 11.0%, according to the SEC's series.
The SEC's stats show that of the $8.188 trillion in assets, $1.356 trillion was in Prime funds, down $26.2 billion in April. Prime assets were down $0.5 billion in March, up $18.2 billion in February, $22.4 billion in January, $1.2 billion in December, $3.1 billion in November, $9.1 billion in October, $6.2 billion in September, $20.2 billion in August, $22.7 billion in July, $9.8 billion in June, $11.8 billion in May and $2.3 billion last April. Prime funds represented 16.6% of total assets at the end of April. They've increased by $97.9 billion, or 7.8%, over the past 12 months. (Note that the SEC's series includes a number of internal money funds not tracked by ICI, though Crane Data includes most of these assets in its collections.)
Government & Treasury funds totaled $6.680 trillion, or 81.6% of assets. They decreased $75.9 billion in April, decreased $52.0 billion in March, increased $104.5 billion in February, increased $23.1 billion in January, increased $117.3 billion in December, increased $115.4 billion in November, increased $142.1 billion in October, increased $97.8 billion in September, increased $118.1 billion in August, increased $39.0 billion in July, decreased $0.7 billion in June, increased $82.7 billion in May and decreased $25.1 billion last April. Govt & Treasury MMFs are up $711.5 billion over 12 months, or 11.9%. Tax Exempt Funds decreased $0.3 billion to $151.6 billion, or 1.9% of all assets. The number of money funds was 289 in April, up 2 from the previous month and up 12 funds from a year earlier.
Yields for Taxable MMFs were mixed while Tax Exempt MMFs were up in April. The Weighted Average Gross 7-Day Yield for Prime Institutional Funds on April 30 was 3.82%, up 1 bp from the prior month. The Weighted Average Gross 7-Day Yield for Prime Retail MMFs was 3.82%, unchanged from the previous month. Gross yields were 3.71% for Government Funds, unchanged from last month. Gross yields for Treasury Funds were down 1 bp at 3.71%. Gross Yields for Tax Exempt Institutional MMFs were up 101 basis points to 3.53% in April. Gross Yields for Tax Exempt Retail funds were up 79 bps to 3.29%.
The Weighted Average 7-Day Net Yield for Prime Institutional MMFs was 3.73%, up 2 bps from the previous month and down 64 bps from 4/30/25. The Average Net Yield for Prime Retail Funds was 3.56%, up 1 bp from the previous month and down 66 bps since 4/30/25. Net yields were 3.50% for Government Funds, unchanged from last month. Net yields for Treasury Funds were down 1 bp from the previous month at 3.50%. Net Yields for Tax Exempt Institutional MMFs were up 100 bps from March to 3.41%. Net Yields for Tax Exempt Retail funds were up 79 bps at 3.07% in April. (Note: These averages are asset-weighted.)
WALs and WAMs were mixed in April. The average Weighted Average Life, or WAL, was 66.3 days (up 2.8 days) for Prime Institutional funds, and 54.4 days for Prime Retail funds (up 2.7 days). Government fund WALs averaged 94.9 days (up 0.5 days) while Treasury fund WALs averaged 98.2 days (up 1.3 days). Tax Exempt Institutional fund WALs were 4.4 days (down 0.2 days), and Tax Exempt Retail MMF WALs averaged 26.9 days (down 2.1 days).
The Weighted Average Maturity, or WAM, was 40.6 days (up 3.2 days from the previous month) for Prime Institutional funds, 36.6 days (up 3.8 days from the previous month) for Prime Retail funds, 41.3 days (down 0.5 days from previous month) for Government funds, and 47.3 days (down 0.2 days from previous month) for Treasury funds. Tax Exempt Inst WAMs were unchanged at 4.4 days, while Tax Exempt Retail WAMs were down 2.2 days from previous month at 26.0 days.
Total Daily Liquid Assets for Prime Institutional funds were 49.7% in April (down 3.3% from the previous month), and DLA for Prime Retail funds was 47.6% (down 3.8% from previous month) as a percent of total assets. The average DLA was 59.1% for Govt MMFs and 94.3% for Treasury MMFs. Total Weekly Liquid Assets was 65.7% (down 0.3% from the previous month) for Prime Institutional MMFs, and 63.4% (up 0.3% from the previous month) for Prime Retail funds. Average WLA was 75.1% for Govt MMFs and 99.0% for Treasury MMFs.
Note that the SEC made a number of changes to their monthly release in April 2025, so we're no longer publishing a number of tables. A press release titled, "SEC Publishes New Data and Analysis About Registered Investment Companies and Money Market Funds," states, "The Securities and Exchange Commission ... published new data and analysis in a pair of reports that provide the investing public with updated key information about registered investment companies and money market funds. 'It is important that the Commission publicly shares the information it collects in a clear and transparent way,' says Acting Chairman Mark Uyeda. 'These two reports will provide the public with key information about the approximately $41.5 trillion investors trust to funds and the approximately $7.39 trillion invested in money market funds.'"
The SEC says, "Money Market Fund Statistics is an enhanced version of the money market funds report generated by the Division of Investment Management. This report contains additional statistical analysis and enhancements, as well as certain metrics based on Form N-MFP data. The modifications to the report are designed to further facilitate the public's ability to efficiently review, digest, and use aggregate information about the money market fund industry by including summaries of more money market fund data, including information about internal affiliated funds, portfolio investments, flows, and industry concentration. The report extends the downloadable historical statistical series of data back to 2010."
Tim Husson, who leads the SEC's Division of Investment Management's Analytics Office, adds, "Forms N-MFP and N-CEN provide insights into key areas of the investment company industry. The reports reflect our continued dedication to enhance the public's use of important information about the industry."
