Money Market News

Archives »

The U.S. Securities and Exchange Commission released its latest "Money Market Fund Statistics" summary late last week. It shows that total assets were down ($23.7 billion) in June, but Prime funds rose for the 6th month in a row. Prime MMFs gained $4.0 billion (after gaining $2.5 billion in May and $9.8 billion in April). Government money funds decreased by $26.9 billion, while Tax Exempt MMFs lost $0.8 billion. Gross yields rose for Prime, Govt and Tax Exempt MMFs as the Fed hiked rates for the third time in 2 years in June. 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 recap below.

To the top E-mail this article

In addition to its recent "2017 Liquidity Survey, the Association for Financial Professionals, an organization that represents corporate treasury management professionals, also recently published, "AFP Executive Guide to Investment Strategy and Policy." Underwritten by J.P. Morgan Asset Management, the guide's Executive Summary explains, "With interest rates starting to rise and new regulations being applied, now is a good time to review treasury investment policy to ensure it will permit the company to respond as the market environment evolves. The guide recognizes that improved technology gives treasurers better visibility of cash and the ability to build more accurate cash position forecasts. In turn, this information enables treasurers to stratify cash into buckets, so that companies may be able to tolerate different levels of risk for each one."

To the top E-mail this article

This month, our Money Fund Intelligence newsletter quotes from our recent Money Fund Symposium keynote speech with Martin Flanagan, CEO & President of Atlanta-based Invesco. We discussed a number of important topics in the asset management, money fund, and product development spheres. An edited transcript from the session follows. This interview is reprinted from the July issue of our flagship MFI newsletter; contact us at info@cranedata.com to request the full issue.

To the top E-mail this article

Today, we review a number of issues involving European money market funds, pending regulations, and "offshore" cash. We revisit the recently released AFP Liquidity Survey, and quote its section on Europe and the euro, we cite a new WSJ article, which discusses the massive pools of cash trapped outside the U.S., and we also review our latest MFI International Money Fund Portfolio Holdings data. As we mentioned in our "Link of the Day" yesterday, Crane Data is preparing for its next European Money Fund Symposium, which will take place in Paris this Sept. 25-26. (Note: Fitch will also host a Teleconference entitled, "European Money Fund Reform Finalised; What happens next?" this morning at 10:00am EDT.)

To the top E-mail this article

The Investment Company Institute released its latest monthly "Money Market Fund Holdings" summary (with data as of June 30, 2017) yesterday. This release reviews the aggregate daily and weekly liquid assets, regional exposure, and maturities (WAM and WAL) for Prime and Government money market funds. The MMF Holdings release says, "The Investment Company Institute (ICI) reports that, as of the final Friday in June, prime money market funds held 29.6 percent of their portfolios in daily liquid assets and 43.9 percent in weekly liquid assets, while government money market funds held 59.5 percent of their portfolios in daily liquid assets and 74.7 percent in weekly liquid assets." Prime DLA rose from 27.8% last month as well with Prime WLA rose from 43.4% last month. We review the ICI's latest Holdings update, along with J.P. Morgan's Taxable money market fund holdings update, below.

To the top E-mail this article

The July issue of Crane Data's Bond Fund Intelligence, which was sent out to subscribers Monday, features the lead story, "Bond Fund Inflows Continue at Record Pace in H1'17," which reviews the heavy inflows into bond funds in the first half of 2017. BFI also includes the "profile" article, "Pros & Cons of Ultra-Short BFs by Crane, Pope & Olsen," which quotes from a recent Money Fund Symposium session on ultra-short bond funds. In addition, we recap the latest Bond Fund News, which includes briefs on higher yields in June, inflows, active bond funds, and corporate bonds. BFI also includes our Crane BFI Indexes, averages and summaries of major bond fund categories. We excerpt from the July issue below. (Contact us if you'd like to see a copy of our latest Bond Fund Intelligence and BFI XLS data spreadsheet, and watch for our latest Bond Fund Portfolio Holdings "beta" next week.)

To the top E-mail this article

Last week, we excerpted from the Association for Financial Professionals' latest "2017 AFP Liquidity Survey Highlights and press release. (See our July 12 Link of the Day and our July 14 News, "AFP Liquidity Survey Shows Money Funds Up, Bank Deposits Inch Down.") Today, we quote more from the full report (which is available only to AFP Members). We discussed cash holdings and investment policies Friday, but the AFP also writes, "At nearly half (47 percent) of organizations, investment policies call out and/or separate cash holdings used for day-to-day liquidity from the rest of the company's cash and short-term investment holdings. This includes a policy stipulating the amount of cash holdings that are set aside for day-to-day liquidity versus other uses.... This is higher than the 41 percent of companies that had policies that call out/separate cash holdings last year."

To the top E-mail this article

We wrote earlier this week that the Association for Financial Professionals released its "2017 AFP Liquidity Survey and quoted from the AFP's press release. (See our July 12 Link of the Day.) Today, we quote from the "Report of Survey Highlights," which is available to the public. It says, "[T]reasury and finance professionals remain cautiously optimistic. Safety is still of the utmost importance to them. Despite encouraging signs from the Federal Reserve -- particularly the Federal Open Market Committee’s decisions to gradually raise short-term interest rates -- organizations' investment policies are still not focused on yield. Indeed, a general feeling of apprehension is reflected in companies' heavy reliance on bank deposits as their investment vehicles of choice: 53 percent of all corporate cash holdings are still maintained at banks. That is slightly lower than the 55 percent reported last year."

To the top E-mail this article

Crane Data released its July Money Fund Portfolio Holdings Wednesday, and our latest collection of taxable money market securities, with data as of June 30, 2017, shows yet another increase in Repo but declines in all other composition segments. Money market securities held by Taxable U.S. money funds overall (tracked by Crane Data) decreased by $60.8 billion to $2.631 trillion last month, after increasing $59.8 billion in May, decreasing $3.2 billion in April, and decreasing $11.8 billion in March. Repo remained the largest portfolio segment, followed by Treasuries and Agencies. CDs decreased and remained in fourth place, followed by Commercial Paper, Other/Time Deposits and VRDNs. Below, we review our latest Money Fund Portfolio Holdings statistics. (Visit our Content center to download the latest files, or contact us if you'd like to see a sample of our latest Portfolio Holdings Reports.)

To the top E-mail this article

Crane Data's latest Money Fund Market Share rankings show assets in U.S. money fund complexes were mixed in June, as overall assets fell by $15.0 billion, or -0.5%. Total assets have increased by $45.3 billion, or 1.6%, over the past 3 months, but they would be down slightly had we not added $67 billion in new funds in April. They've increased by $188.3 billion, or 7.2% over the past 12 months through June 30, but again note that assets would be down had our numbers not been inflated by the addition of a number of funds. (Crane Data added batches of previously untracked funds in December, February and April. These funds, which total over $200 billion, include a number of internal funds that we weren't aware of prior to disclosures of the SEC's Form N-MFP.) The biggest gainers in June were Dreyfus, whose MMFs rose by $9.9 billion, or 6.3%, SSgA, whose MMFs rose by $4.5 billion, or 5.9%, First American, whose MMFs rose by $1.9 billion, or 4.1%, and Morgan Stanley, whose MMFs rose by $1.8 billion, or 1.6%.

To the top E-mail this article

The Wall Street Journal writes, "Cash Creeps Back Into an Unloved Corner of the Money Markets," which discusses the return of cash into Prime money market funds. The article says, "Money has started to flow back into short-term funds that investors raced to get out of last fall. U.S. prime money market funds, which invest in short-term corporate IOUs, had $611.5 billion in assets at the end of May, up 12% from the end of last year, according to the latest data from the Office of Financial Research and the Securities and Exchange Commission. That's a significant turnabout after the assets in such funds more than halved over the course of 2016."

To the top E-mail this article

The July issue of our flagship Money Fund Intelligence newsletter, which was sent to subscribers Monday morning, features the articles: "Prime, Alternates, Business as Usual Hot Topics in Atlanta," which quotes highlights from our recent Money Fund Symposium conference in Atlanta, "Invesco's Flanagan Keynotes Money Fund Symposium," which reviews the Keynote speech from Invesco CEO & President Martin Flanagan, and, "Worldwide MMF Assets Up: US, China Drop; India Rising?" which reviews ICI's latest quarterly global statistics. We have also updated our Money Fund Wisdom database with June 30, 2017, statistics, and sent out our MFI XLS spreadsheet Monday a.m. (MFI, MFI XLS and our Crane Index products are all available to subscribers via our Content center.) Our July Money Fund Portfolio Holdings are scheduled to ship Wednesday, July 12, and our July Bond Fund Intelligence is scheduled to go out Monday, July 17.

To the top E-mail this article
Archives »