Money Fund Intelligence XLS

Money Fund Intelligence XLS Sample

Crane Data released its October Money Fund Portfolio Holdings Friday, and our most recent collection, with data as of September 30, 2020, shows a decrease in every category except VRDNs last month. Money market securities held by Taxable U.S. money funds (tracked by Crane Data) decreased by $94.3 billion to $4.772 trillion last month, after decreasing $12.7 billion in August, $83.1 billion in July and $159.1 billion in June. Money market securities increased $31.6 billion in May, and a staggering $529.4 billion in April and $725.6 billion in March. Treasury securities remained the largest portfolio segment, followed by Repo, then Agencies. CP remained fourth, ahead of CDs, 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 to see our latest Portfolio Holdings reports.)

Among taxable money funds, Treasury securities decreased by $6.3 billion (-0.25%) to $2.461 trillion, or 51.6% of holdings, after increasing $3.1 billion in August, decreasing $79.9 billion in July and increasing $60.8 billion in June. Repurchase Agreements (repo) decreased by $6.7 billion (-64%) to $1.041 trillion, or 21.8% of holdings, after increasing $60.8 billion in August, increasing $40.0 billion in July, and decreasing $124.3 billion in June. Government Agency Debt decreased by $28.1 billion (-3.5%) to $768.4 billion, or 16.1% of holdings, after decreasing $37.6 billion in August, $45.1 billion in July and $65.2 billion in June. Repo, Treasuries and Agencies totaled $4.271 trillion, representing a massive 89.5% of all taxable holdings.

Money funds' holdings of CP, CDs and Other (mainly Time Deposits) fell in September, breaking below the $500 billion level for the first time since December 2018, while VDRNs saw assets increase. Commercial Paper (CP) decreased $11.6 billion (-4.8%) to $231.9 billion, or 4.9% of holdings, after decreasing $32.5 billion in August, $10.7 billion in July and $6.5 billion in June. Certificates of Deposit (CDs) fell by $20.8 billion (-11.8%) to $156.1 billion, or 3.3% of taxable assets, after decreasing $19.0 billion in August, $12.3 billion in July and $9.1 billion in June. Other holdings, primarily Time Deposits, decreased $21.0 billion (-18.2%) to $94.6 billion, or 2.0% of holdings, after increasing $15.3 billion in August, $22.3 billion in July and decreasing by $13.7 billion in June. VRDNs increased to $94.6 billion, or 0.4% of assets, from $19.1 billion the previous month. (Note: This total is VRDNs for taxable funds only. We will publish Tax Exempt MMF holdings separately late Tuesday.)

Prime money fund assets tracked by Crane Data dropped $149.0 billion to $987.0 billion, or 20.7% of taxable money funds' $4.772 trillion total. Among Prime money funds, CDs represent 15.8% (up from 15.6% a month ago), while Commercial Paper accounted for 23.5% (up from 21.4%). The CP totals are comprised of: Financial Company CP, which makes up 14.3% of total holdings, Asset-Backed CP, which accounts for 5.3%, and Non-Financial Company CP, which makes up 3.9%. Prime funds also hold 6.4% in US Govt Agency Debt, 27.5% in US Treasury Debt, 5.0% in US Treasury Repo, 0.6% in Other Instruments, 5.6% in Non-Negotiable Time Deposits, 4.9% in Other Repo, 6.4% in US Government Agency Repo and 1.0% in VRDNs.

Government money fund portfolios totaled $2.616 trillion (54.8% of all MMF assets), up $111.0 billion from $2.505 trillion in August, while Treasury money fund assets totaled another $1.170 trillion (24.5%), down from $1.226 trillion the prior month. Government money fund portfolios were made up of 27.0% US Govt Agency Debt, 11.7% US Government Agency Repo, 46.1% US Treasury debt, 14.9% in US Treasury Repo, 0.2% in VRDNs and 0.1% in Investment Company . Treasury money funds were comprised of 84.1% US Treasury Debt and 15.8% in US Treasury Repo. Government and Treasury funds combined now total $3.786 trillion, or 79.3% of all taxable money fund assets.

European-affiliated holdings (including repo) decreased by $33.5 billion in September to $626.4 billion; their share of holdings fell to 13.1% from last month's 13.6%. Eurozone-affiliated holdings fell to $430.0 billion from last month's $456.7 billion; they account for 9.0% of overall taxable money fund holdings. Asia & Pacific related holdings decreased $21.1 billion to $227.0 billion (4.8% of the total). Americas related holdings fell $37.0 billion to $3.915 trillion and now represent 82.0% of holdings.

The overall taxable fund Repo totals were made up of: US Treasury Repurchase Agreements (up $29.9 billion, or 5.0%, to $623.4 billion, or 13.1% of assets); US Government Agency Repurchase Agreements (down $22,9 billion, or -5.8%, to $369.4 billion, or 7.7% of total holdings), and Other Repurchase Agreements (down $13.7 billion, or -22.2%, from last month to $48.0 billion, or 1.0% of holdings). The Commercial Paper totals were comprised of Financial Company Commercial Paper (down $2.0 billion to $141.5 billion, or 3.0% of assets), Asset Backed Commercial Paper (down $3.2 billion to $52.3 billion, or 1.1%), and Non-Financial Company Commercial Paper (down $6.4 billion to $38.2 billion, or 0.8%).

The 20 largest Issuers to taxable money market funds as of Sept. 30, 2020, include: the US Treasury ($2,477.9 billion, or 51.9%), Federal Home Loan Bank ($460.7B, 9.7%), Fixed Income Clearing Co ($144.9B, 3.0%), BNP Paribas ($132.9B, 2.8%), Federal National Mortgage Association ($113.7B, 2.4%), Federal Farm Credit Bank ($98.3B, 2.1%), RBC ($96.7B, 2.0%), JP Morgan ($92.7B, 1.9%), Federal Home Loan Mortgage Co ($74.7B, 1.6%), Barclays ($64.0B, 1.3%), Mitsubishi UFJ Financial Group Inc ($62.3B, 1.3%), Credit Agricole ($50.5B, 1.1%), Citi ($47.9B, 1.0%), Sumitomo Mitsui Banking Co ($47.0B, 1.0%), Societe Generale ($42.3B, 0.9%), Toronto-Dominion Bank ($39.5B, 0.8%), Bank of Montreal ($37.5B, 0.8%), Bank of America ($37.5B, 0.8%), HSBC ($31.9B, 0.7%) and Canadian Imperial Bank of Commerce ($28.5B, 0.6%).

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 Co ($144.8B, 13.9%), BNP Paribas ($120.8B, 11.6%), JP Morgan ($83.1B, 8.0%), RBC ($78.8B, 7.6%), Barclays ($46.6B, 4.5%), Credit Agricole ($42.6B, 4.1%), Mitsubishi UFJ Financial Group ($42.4B, 4.1%), Citi ($39.4B, 3.8%), Bank of America ($35.5B, 3.4%) and Societe Generale ($32.9B, 3.2%).

The 10 largest issuers of "credit" -- CDs, CP and Other securities (including Time Deposits and Notes) combined -- include: Toronto-Dominion Bank ($23.7B, 5.6%), Mitsubishi UFJ Financial Group ($19.9B, 4.7%), RBC ($17.9B, 4.2%), Barclays ($17.4B, 4.1%), Mizuho Corporate Bank Ltd ($17.3B, 4.1%), Sumitomo Mitsui Trust Bank ($16.3B, 3.9%), Credit Suisse ($12.2B, 2.9%), Canadian Imperial Bank of Commerce ($12.0B, 2.8%) and BNP Paribas ($12.0B, 2.8%).

The 10 largest CD issuers include: Sumitomo Mitsui Banking Co ($14.2B, 9.1%), Mitsubishi UFJ Financial Group Inc ($14.1B, 9.0%), Sumitomo Mitsui Trust Bank ($10.2B, 6.6%), Bank of Montreal ($10.2B, 6.5%), Mizuho Corporate Bank Ltd ($9.5B, 6.1%), Canadian Imperial Bank of Commerce ($7.7B, 4.9%), Toronto-Dominion Bank ($7.2B, 4.6%), Credit Suisse ($7.1B, 4.5%), Svenska Handelsbanken ($5.9B, 3.7%) and Credit Mutuel ($5.2B, 3.3%).

The 10 largest CP issuers (we include affiliated ABCP programs) include: Toronto-Dominion Bank ($16.2B, 8.0%), RBC ($10.3B, 5.1%), JP Morgan ($9.6B, 4.8%), Societe Generale ($8.3B, 4.1%), Citi ($7.6B, 3.8%), BNP Paribas ($7.5B, 3.7%), BPCE SA ($7.0B, 3.5%), NRW.Bank ($6.6B, 3.3%), Sumitomo Mitsui Trust Bank ($6.1B, 3.0%) and Toyota ($5.3B, 2.6%).

The largest increases among Issuers include: Fixed Income Clearing Corp (up $31.7B to $144.9B), US Treasury (up $10.4B to $2,477.9B), Barclays PLC (up $4.3B to $64.0B), BNP Paribas (up $3.7B to $132.9B), HSBC (up $3.4B to $31.9B), ABN Amro Bank (up $2.9B to $17.4B), Deutsche Bank AG (up $1.7B to $19.0B), JP Morgan (up $1.5B to $92.7B), Rabobank (up $1.4B to $9.8B) and Natixis (up $1.0B to $25.5B).

The largest decreases among Issuers of money market securities (including Repo) in September were shown by: the Federal Home Loan Bank (down $30.7B to $460.7B), Credit Agricole (down $22.5B to $50.5B), Federal Home Loan Mortgage Corp (down $9.6B to $74.7B), Mizuho Corporate Bank Ltd (down $8.2B to $26.7B), DNB ASA (down $7.9B to $8.1B), Bank of Nova Scotia (down $6.4B to $20.2B), Citi (down $5.9B to $47.9B), RBC (down $5.8B to $96.7B), Mitsubishi UFJ Financial Group Inc (down $5.6B to $62.3B) and Canadian Imperial Bank of Commerce (down $4.2B to $28.5B).

The United States remained the largest segment of country-affiliations; it represents 77.1% of holdings, or $3.679 trillion. France (5.8%, $276.0B) was number two, and Canada (4.9%, $235.3B) was third. Japan (4.5%, $216.3B) occupied fourth place. The United Kingdom (2.6%, $125.5B) remained in fifth place. The Netherlands (1.3%, $59.7B) was in sixth place, followed by Germany (1.2%, $58.1B), Sweden (0.7%, $31.1B), Switzerland (0.6%, $30.0B) and Australia (0.6%, $26.2B). (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 September 30, 2020, Taxable money funds held 35.7% (down from 36.0%) of their assets in securities maturing Overnight, and another 9.5% maturing in 2-7 days (up from 6.9% last month). Thus, 45.2% in total matures in 1-7 days. Another 14.3% matures in 8-30 days, while 13.0% matures in 31-60 days. Note that close to three-quarters, or 72.5% of securities, mature in 60 days or less (down slightly from last month), the dividing line for use of amortized cost accounting under SEC regulations. The next bucket, 61-90 days, holds 9.6% of taxable securities, while 15.8% matures in 91-180 days, and just 2.2% matures beyond 181 days.

Product Summary
Price  $1000/yr ( Discount Policy )
News dot dot dot ( Articles )
Ranks dot dot dot ( Sortable )
Funds dot dot dot ( Profile Info )
Archives dot dot dot ( Articles )
Index dot dot dot ( Components )
Next Steps
Subscribe Now »
See a demo issue.
Request a trial issue.
Call 1-508-439-4419 for order or info.

Money Fund Intelligence XLS News

Aug 10
 

Crane Data's August Money Fund Portfolio Holdings, with data as of July 31, 2022, show Repo (led by Fed repo) jumping yet again while Treasuries continued a deep 6-month slide. Money market securities held by Taxable U.S. money funds (tracked by Crane Data) increased by $116.1 billion to $4.939 trillion in July, after decreasing $2.6 billion in June, $58.4 billion in May and $55.2 billion in April. Repo remained the largest portfolio segment, while Treasuries remained in the No. 2 spot. The Federal Reserve Bank of New York, which surpassed the U.S. Treasury as the largest "Issuer" two months ago, is now borrowing almost $2.1 trillion from money market funds (the total broke above $2.0 trillion last month). Agencies were the third largest segment, CP remained fourth, ahead of CDs, Other/Time Deposits and VRDNs. Below, we review our latest Money Fund Portfolio Holdings statistics.

Among taxable money funds, Repurchase Agreements (repo) increased $88.7 billion (3.5%) to $2.619 trillion, or 53.0% of holdings, in July, after increasing $128.6 billion in June and $52.5 billion in May. Repo decreased $9.9 billion in April but increased $100.9 billion in March. Treasury securities fell $33.2 billion (-2.3%) to $1.421 trillion, or 28.8% of holdings, after decreasing $72.5 billion in June, $145.4 billion in May, $78.6 billion in April and $79.2 billion in March. Government Agency Debt was up $24.5 billion, or 6.0%, to $430.8 billion, or 8.7% of holdings, after decreasing $14.6 billion in June, increasing $35.1 billion in May, and decreasing $1.0 billion in April. Repo, Treasuries and Agency holdings now total $4.471 trillion, representing a massive 90.5% of all taxable holdings.

Money fund holdings of CP, CDs and Other (mainly Time Deposits) holdings all rose in July. Commercial Paper (CP) increased $15.3 billion (7.2%) to $227.9 billion, or 4.6% of holdings, after decreasing $17.3 billion in June, increasing $5.8 billion in May and decreasing $0.1 billion in April. Certificates of Deposit (CDs) increased $3.6 billion (3.0%) to $122.0 billion, or 2.5% of taxable assets, after decreasing $1.0 billion in June, but increasing $3.4 billion in May and $7.3 billion in April. Other holdings, primarily Time Deposits, increased $17.3 billion (19.0%) to $108.7 billion, or 2.2% of holdings, after decreasing $21.1 billion in June and $4.7 billion in May, but increasing $28.2 billion in April. VRDNs fell to $9.9 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 jumped to $902 billion, or 18.3% of taxable money funds' $4.939 trillion total. Among Prime money funds, CDs represent 13.5% (down from 14.8% a month ago), while Commercial Paper accounted for 25.4% (down from 26.6% in June). The CP totals are comprised of: Financial Company CP, which makes up 17.0% of total holdings, Asset-Backed CP, which accounts for 3.2%, and Non-Financial Company CP, which makes up 5.2%. Prime funds also hold 6.6% in US Govt Agency Debt, 6.0% in US Treasury Debt, 28.9% in US Treasury Repo, 0.3% in Other Instruments, 9.8% in Non-Negotiable Time Deposits, 5.1% in Other Repo, 2.1% in US Government Agency Repo and 0.6% in VRDNs.

Government money fund portfolios totaled $2.781 trillion (56.3% of all MMF assets), up from $2.779 trillion in June, while Treasury money fund assets totaled another $1.257 trillion (25.5%), up from $1.244 trillion the prior month. Government money fund portfolios were made up of 13.4% US Govt Agency Debt, 8.4% US Government Agency Repo, 20.8% US Treasury Debt, 57.1% in US Treasury Repo, 0.0% in Other Instruments. Treasury money funds were comprised of 62.7% US Treasury Debt and 37.0% in US Treasury Repo. Government and Treasury funds combined now total $4.038 trillion, or 81.8% of all taxable money fund assets.

European-affiliated holdings (including repo) increased by $52.0 billion in July to $397.8 billion; their share of holdings rose to 8.1% from last month's 7.2%. Eurozone-affiliated holdings increased to $278.9 billion from last month's $238.5 billion; they account for 5.7% of overall taxable money fund holdings. Asia & Pacific related holdings jumped higher to $176.6 billion (3.6% of the total) from last month's $170.8 billion. Americas related holdings rose to $4.360 trillion from last month's $4.301 trillion, and now represent 88.3% of holdings.

The overall taxable fund Repo totals were made up of: US Treasury Repurchase Agreements (up $66.2 billion, or 2.9%, to $2.312 trillion, or 46.8% of assets); US Government Agency Repurchase Agreements (up $21.3 billion, or 9.2%, to $252.9 billion, or 5.1% of total holdings), and Other Repurchase Agreements (up $1.2 billion, or 2.2%, from last month to $54.3 billion, or 1.1% of holdings). The Commercial Paper totals were comprised of Financial Company Commercial Paper (up $5.0 billion to $152.9 billion, or 3.1% of assets), Asset Backed Commercial Paper (up $2.0 billion to $28.5 billion, or 0.6%), and Non-Financial Company Commercial Paper (up $8.3 billion to $46.6 billion, or 0.9%).

The 20 largest Issuers to taxable money market funds as of July 31, 2022, include: the Federal Reserve Bank of New York ($2.088T, 42.3%), the US Treasury ($1.421 trillion, or 28.8%), Federal Home Loan Bank ($310.6B, 6.3%), Federal Farm Credit Bank ($104.9B, 2.1%), BNP Paribas ($80.6B, 1.6%), RBC ($70.3B, 1.4%), Fixed Income Clearing Corp ($45.9B, 0.9%), Sumitomo Mitsui Banking Co ($45.0B, 0.9%), JP Morgan ($39.4B, 0.8%), Citi ($35.8B, 0.7%), Credit Agricole ($34.3B, 0.7%), Bank of America ($34.0B, 0.7%), Mitsubishi UFJ Financial Group Inc ($32.6B, 0.7%), Barclays ($31.3B, 0.6%), Toronto-Dominion Bank ($26.8B, 0.5%), Mizuho Corporate Bank Ltd ($26.1B, 0.5%), Bank of Montreal ($24.0B, 0.5%), Canadian Imperial Bank of Commerce ($21.4B, 0.4%), Goldman Sachs ($19.0B, 0.4%) and ING Bank ($17.0B, 0.3%).

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: ` Federal Reserve Bank of New York ($2.088T, 79.7%), BNP Paribas ($74.3B, 2.8%), RBC ($50.7B, 1.9%), Fixed Income Clearing Corp ($45.9B, 1.8%), JP Morgan ($32.4B, 1.2%), Sumitomo Mitsui Banking Corp ($31.5B, 1.2%), Bank of America ($29.4B, 1.1%), Citi ($27.0B, 1.0%), Mitsubishi UFJ Financial Group Inc ($19.6B, 0.7%) and Barclays PLC ($17.9B, 0.7%) <b:>`_. The largest users of the $2.088 trillion in Fed RRP include: Vanguard Federal Money Mkt Fund ($134.1B), Goldman Sachs FS Govt ($130.4B), Fidelity Govt Money Market ($127.3B), Fidelity Govt Cash Reserves ($115.4B), JPMorgan US Govt MM ($113.3B), Morgan Stanley Inst Liq Govt ($92.8B), Federated Hermes Govt ObI ($79.0B), BlackRock Lq FedFund ($74.0B), Dreyfus Govt Cash Mgmt ($70.0B) and State Street Inst US Govt ($66.5B).

The 10 largest issuers of "credit" -- CDs, CP and Other securities (including Time Deposits and Notes) combined -- include: Credit Agricole ($20.4B, 5.3%), RBC ($19.6B, 5.1%), Mizuho Corporate Bank Ltd ($18.7B, 4.8%), Toronto-Dominion Bank ($15.5B, 4.0%), Skandinaviska Enskilda Banken AB ($15.0B, 3.9%), Sumitomo Mitsui Banking Corp ($13.5B, 3.5%), Barclays PLC ($13.4B, 3.5%), Mitsubishi UFJ Financial Group Inc ($13.0B, 3.4%), Canadian Imperial Bank of Commerce ($12.4B, 3.2%) and Bank of Montreal ($12.3B, 3.2%).

The 10 largest CD issuers include: Sumitomo Mitsui Banking Corp ($11.4B, 9.3%), Credit Agricole ($9.7B, 8.0%), Canadian Imperial Bank of Commerce ($9.1B, 7.5%), Mitsubishi UFJ Financial Group Inc ($8.9B, 7.3%), Toronto-Dominion Bank ($7.3B, 6.0%), Bank of Nova Scotia ($6.2B, 5.1%), Sumitomo Mitsui Trust Bank ($5.7B, 4.7%), Citi ($5.1B, 4.2%), Svenska Handelsbanken ($4.7B, 3.9%) and Nordea Bank ($4.3B, 3.6%).

The 10 largest CP issuers (we include affiliated ABCP programs) include: RBC ($13.5B, 7.3%), Bank of Montreal ($8.0B, 4.3%), Toronto-Dominion Bank ($7.6B, 4.1%), JP Morgan ($7.0B, 3.8%), BNP Paribas ($5.2B, 2.8%), National Australia Bank Ltd ($5.2B, 2.8%), Barclays PLC ($5.2B, 2.8%), Svenska Handelsbanken ($4.9B, 2.7%), Macquarie Bank Limited ($4.9B, 2.6%) and Australia & New Zealand Banking Group Ltd ($4.9B, 2.6%).

The largest increases among Issuers include: Federal Reserve Bank of New York (up $77.2B to $2.088T), Federal Home Loan Bank (up $29.8B to $310.6B), Credit Agricole (up $15.3B to $34.3B), RBC (up $5.8B to $70.3B), Barclays PLC (up $5.6B to $31.3B), BNP Paribas (up $5.0B to $80.6B), Natixis (up $4.5B to $13.5B), Svenska Handelsbanken (up $4.2B to $12.2B), Societe Generale (up $4.0B to $16.8B) and Rabobank (up $3.8B to $7.5B).

The largest decreases among Issuers of money market securities (including Repo) in July were shown by: the US Treasury (down $33.2B to $1.421T), Fixed Income Clearing Corp (down $21.9B to $45.9B), Goldman Sachs (down $10.0B to $19.0B), Landesbank Baden-Wurttemberg (down $2.8B to $5.0B), Federal Home Loan Mortgage Corp (down $2.0B to $10.6B), National Australia Bank Ltd (down $1.7B to $6.9B), Mizuho Corporate Bank Ltd (down $1.5B to $26.1B), Nordea Bank (down $1.3B to $5.1B), Lloyds Banking Group (down $1.3B to $5.1B) and Sumitomo Mitsui Banking Corp (down $1.2B to $45.0B).

The United States remained the largest segment of country-affiliations; it represents 84.7% of holdings, or $4.186 trillion. Canada (3.5%, $174.3B) was in second place, while France (3.3%, $161.1B) was No. 3. Japan (3.1%, $153.4B) occupied fourth place. The United Kingdom (1.2%, $57.3B) remained in fifth place. Netherlands (0.9%, $43.1B) was in sixth place, followed by Sweden (0.8%, $40.8B) Australia (0.6%, $30.8B), ` Germany <b:>`_ (0.6%, $30.2B) and Switzerland (0.3%, $13.8B). (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 July 31, 2022, Taxable money funds held 64.9% (up from 63.8%) of their assets in securities maturing Overnight, and another 7.0% maturing in 2-7 days (up from 6.9%). Thus, 71.9% in total matures in 1-7 days. Another 6.7% matures in 8-30 days, while 7.4% matures in 31-60 days. Note that over three-quarters, or 86.1% 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 4.7% of taxable securities, while 7.4% matures in 91-180 days, and just 1.9% matures beyond 181 days. (Visit our Content center to download, or contact us to request our latest Portfolio Holdings reports.)

Aug 05
 

The August issue of our flagship Money Fund Intelligence newsletter, which was sent to subscribers Friday morning, features the articles: "MMF Yields Approach 2% on 2nd Fed 75; Assets $5 Trillion," which discusses the jump in yields and rise in assets in July; "CastleOak's Jones on Minority Dealers, Portals, D&I Shares," our most recent "profile"; and, "SEC's Birdthistle Speaks on MMFs, Pending Reforms," which quotes from a recent speech from the Director of the Division of Investment Management. We also sent out our MFI XLS spreadsheet Friday morning, and we've updated our database with 7/31/22 data. Our August Money Fund Portfolio Holdings are scheduled to ship on Tuesday, Aug. 9, and our August Bond Fund Intelligence is scheduled to go out on Friday, Aug. 12. (Note: Our MFI, MFI XLS and Crane Index products are all available to subscribers via our Content center.)

MFI's "Yields Approach 2%" article says, "Money fund yields surged higher again in July as the Federal Reserve hiked rates by 75 bps for the second time in 2 months. Our Crane 100 Money Fund Index (7-Day Yield) jumped by 44 basis points to 1.62% in July, and it's risen by 24 more bps already in August (through 8/3) to 1.86%. Average yields are now more than triple their level of 0.58% on May 31; they're up from 0.15% on March 31 and up from 0.02% on February 28 (where they'd been for 2 years prior)."

It continues, "The top-yielding money funds were poised just under 2.0% on 7/31, but they've since smashed through this level and are now above 2.25%. Yields continue to digest the Fed's 7/27 big hike, so the average money fund yield should break over 2.0% and the top-yielding funds should approach 2.5% in coming weeks. Money fund yields could even be as high as 3.0% or even 4.0% by year-end."

Our "CastleOak" piece explains, "This month MFI interviews David R. Jones, President & CEO of CastleOak Securities, a minority-owned dealer and one of the first firms to offer both an online money market trading portal and a D&I share class in the money fund space. We discuss the latest in diversity, corporate investing and cash. Our Q&A follows."

MFI says, "Give us some history. Jones comments, "I founded the firm back in 2006, and we've grown CastleOak to be one of the largest diverse investment banks on Wall Street. We've got six offices around the country and are headquartered in New York. We've grown the firm from four individuals ... and now we've got over 55 employees. We focus on the capital markets for our clients, and that includes primary issuance, both in debt and equity, and also the secondary trading that goes along with that. On the fixed income side, back in 2010 when I brought Dan Davis and his team on, that's when we got into the Treasury, Agency and Money Market space. We've got a very strong presence on the secondary side in the front end of the curve."

Our "Birdthistle" piece states, "U.S. Securities & Exchange Commission Division of Investment Management Director William Birdthistle recently gave a talk entitled, 'Remarks at PLI: Investment Management 2022,' where he spent some time discussing money funds. He comments, 'The final topic I would like to touch on today is `money market funds. These funds, together with a few others, have at times been called 'shadow banks.' Today, the more common, slightly less pejorative term is 'non-bank financial institution.' As a proud member of the SEC's Division of Investment Management, I tend to view the $128 trillion in regulatory assets under management subject to our oversight as a substantial universe in its own right.... But I understand that things might seem otherwise to advocates for the non-fund community."

Birdthistle explains, "Money market funds enjoyed their rise to prominence, of course, largely following the adoption of Regulation Q. Regulation Q imposed ceilings on interest rates that could be paid on bank deposits, which proved to be a competitive liability during the period of high inflation in the late 1970s and early 1980s. Instruments such as money market funds that could offer market interest rates (which peaked above 12% in 1981) prospered at the expense of bank accounts capped at the Regulation Q ceiling (which remained below 6% at the time). That moment served as the spark of life for an instrument that has since grown to hold approximately $5 trillion in assets."

MFI also includes the News brief, "Fed Hikes 75 Bps Again to 2.25-2.50%." It tells readers, "The Federal Reserve Board again hiked short-term interest rates by 75 basis points, raising its Fed funds target rate to a range of 2.25-2.50%."

Another News brief, "ICI President Eric Pan," explains, "ICI President Eric Pan posts, 'Fact-checking Statements on Money Market Fund Reform,' which briefly revisits pending SEC Money Fund Reforms and is partially in response to a recent speech by the SEC's William Birdthistle."

A third News brief, "The FT on "'`The return of cash': money market fund sector perks up on rising rates." They write, "Rising interest rates are turning the $4.6tn money market fund sector from a drag on profits into a source of earnings in a rare piece of good news for asset managers whose fees have been hit hard by falling equity and debt markets."

A sidebar, "Schwab on Cash Sorting," states, "Charles Schwab recently hosted a '2022 Summer Business Update,' which mentioned cash in a number of places. CFO Peter Crawford comments, 'Our performance was obviously helped by higher interest rates across the curve, which boosted our net interest margin and BDA [bank deposit account] yield and eliminated money fund fee waivers by the end of the quarter <b:>`_.... [T]he elimination of money fund fee waivers and organic inflows offset the impact of the market decline.'"

Another sidebar, "Fidelity Merging State MMFs," explains, "Fidelity Investments filed to liquidate and reorganize most of their State Municipal money market funds, merging its AZ, CT, MI, OH, and PA Muni MMFs into Fidelity Municipal Money Market Fund, and consolidating their CA, MA, NJ and NY State Muni fund offerings. While there haven't been many other moves in 2022, there has been a steady stream of exits in the Tax-Exempt space over the past decade. Over the past 5 years, the number of Muni MMFs has dropped from 245 to 150 <b:>`_, while the number of State funds has fallen from 116 to 53. Since June 2008, assets in `Muni MMFs have steadily declined from $490.6 billion to $111.4 billion (as of 6/30/22). Fidelity currently manages 33 Tax-Exempt MMFs with $28.0 billion; after the mergers go through, this will be reduced to 20 MFs."

Our August MFI XLS, with July 31 data, shows total assets increased $26.0 billion to $5.014 trillion, after increasing $31.9 billion in June, but decreasing $10.7 billion in May and $74.3 billion in April. MMFs increased $24.1 billion in March, decreased $34.6 billion in February and decreased $128.1 billion in January. Assets increased $104.6 billion in December, $49.7 billion in November and $20.5 billion October. Our broad Crane Money Fund Average 7-Day Yield was up 46 bps to 1.43%, and our Crane 100 Money Fund Index (the 100 largest taxable funds) was up 44 bps to 1.62% in July.

On a Gross Yield Basis (7-Day) (before expenses are taken out), the Crane MFA and the Crane 100 both were both higher at 1.82% and 1.89%, respectively. Charged Expenses averaged 0.40% and 0.27% for the Crane MFA and the Crane 100. (We'll revise expenses on Monday once we upload the SEC's Form N-MFP data for 7/31/22.) The average WAM (weighted average maturity) for the Crane MFA was a record low 22 days (down 1 day from previous month) while the Crane 100 WAM decreased 1 day to 23 days. (See our Crane Index or craneindexes.xlsx history file for more on our averages.)

Aug 01
 

While Crane Data is gearing up for its next live event, European Money Fund Symposium, which will take place Sept. 27-28 in Paris, France, we're also starting to make plans for our next Money Fund University educational conference. Our 12th annual MFU will change slightly from its previous "basic training" format to a more advanced "Master's in Money Markets" program this year. It will take place at the Hyatt Regency in Boston, Mass., December 15-16, 2022. (We cancelled MFU last January and hosted a virtual event, but this year we'll be back live and in person.) Crane's Money Fund University is designed for those relatively new to the money market fund industry or those in need of a concentrated refresher on a broad core curriculum. The event also focuses on hot topics like money market fund regulations, money fund alternatives, offshore markets, and other recent industry trends. Our educational conference features a faculty of the money fund industry's top lawyers, strategists, and portfolio managers, and the Boston show will include an extended free training session (and lunch) for Crane Data clients, as well as a Holiday party where all are welcome. Money Fund University offers a 2-day crash course on money market mutual funds, educating attendees on the history of money funds, the Fed, interest rates, ratings, rankings, and money market instruments such as commercial paper, Treasury bills, CDs and repo. We also cover portfolio construction and credit analysis. Registrations ($750) are now being taken, and the latest agenda is available here. (E-mail us to request the latest brochure.) New portfolio managers, analysts, investors, issuers, service providers, and anyone interested in expanding their knowledge of "cash" investing should benefit from our comprehensive program. Even experienced professionals may enjoy a refresher course and the opportunity to interact with peers in an informal setting. Also, please join us for the 8th Annual Crane's European Money Fund Symposium. The latest agenda is available and registrations are still being taken for this year's European event, which will take place Sept. 27-28 at the Renaissance Paris La Defense in Paris, France. Registration for our 2022 Crane's European Money Fund Symposium is $1,000 USD. Please make your hotel reservations soon! Rooms must be booked before August 5 to receive the discounted rate of E259. Visit www.euromfs.com to register, and contact us to request the PDF brochure. (Let us know too if you'd like information on speaking or sponsorship pricing.) Mark your calendars for our next Bond Fund Symposium, which be held in Boston, Mass., on March 23-24, 2023. (Click here to see last year's agenda.) Bond Fund Symposium is the only conference devoted entirely to bond mutual funds, bringing together bond fund managers, marketers, and professionals with fixed-income issuers, investors and service providers. The majority of the content is aimed at the growing ultra-short and conservative ultra-short bond fund marketplace. Finally, mark your calendars too for our next big show, Crane's Money Fund Symposium, which will be held in Atlanta, Ga., June 21-23, 2023. Money Fund Symposium attracts money fund managers, marketers and servicers, cash investors, money market securities dealers, issuers, and regulators for 2 1/2 days of sessions, socializing and networking. Let us know if you'd like more details on any of our events, and we hope to see you in Paris in September, Boston in December or in March 2023, and Atlanta in June 2023. Thanks to all of our speakers, sponsors and supporters for your patience and support over the past 2+ rough years!

Jul 08
 

The July issue of our flagship Money Fund Intelligence newsletter, which was sent to subscribers Friday morning, features the articles: "AFP 2022 Liquidity Survey: Banks, MMFs Still Dominate," which discusses the results of a poll of corporate treasurers on cash investing; "Money Fund Symposium '22: Focus on D&I, Rates, Reforms," which covers our recent big conference in Minneapolis; and, "Worldwide MF Assets Fall in Q1, Led by US, Ireland, Lux," which reviews the latest statistics on international money fund markets. We also sent out our MFI XLS spreadsheet Friday morning, and we've updated our database with 6/30/22 data. Our July Money Fund Portfolio Holdings are scheduled to ship on Tuesday, July 12, and our July Bond Fund Intelligence is scheduled to go out on Friday, June 15. (Note: Our MFI, MFI XLS and Crane Index products are all available to subscribers via our Content center.)

MFI's "Liquidity Survey" article says, "The Association for Financial Professionals published its '2022 AFP Liquidity Survey' last month, which polls corporate treasurers on cash management practices and preferences. They explain, 'The typical organization currently maintains 55% of its short-term investments in bank deposits, slightly higher than the 52% reported in 2021 and 51% in 2020.'" (See AFP's press release and our June 22 News, "More AFP Liquidity Survey: Yield No. 1 Factor for Money Funds.")

AFP writes, "When interest rates dropped to zero at the beginning of the pandemic in the spring of 2020, bank relationships were key as organizations needed to draw down on liquidity.... With inflation relatively high, the Federal Reserve has already raised interest rates. Treasury professionals will continue to rely on relationships with their financial institutions as low yields provide little appetite for companies to move away from bank deposits. Companies maintain their investments in relatively few vehicles. Organizations invest in an average of 2.5 vehicles for their cash and short-term investments -- a figure unchanged from the 2.5 reported in 2021."

Our "Symposium" piece explains, "Crane Data recently hosted its 14th annual Money Fund Symposium conference in Minneapolis, which brought together over 420 money fund and cash investment professionals to discuss the latest involving rising rates, pending money fund reforms, and ESG/D&I money fund issues. (Note: Thanks to those who attended Money Fund Symposium! The recordings are available in our 'Money Fund Symposium 2022 Download Center <i:https://cranedata.com/publications/mfsymposium-2022>`_,' and mark your calendars for next year's MFS, June 21-23, 2023, in Atlanta.) We quote from some of the highlights below <b:>`_."

It continues, "The 'Major Money Fund Issues 2022' session featured Federated Hermes' Deborah Cunningham, Dreyfus' John Tobin and Northern Trust AM's Peter Yi. Yi says, 'Northern Trust has had a really rich history in D&I [diversity & inclusion] and social impact strategies. We've been doing diversity-type exposures for probably 30, 40 years.... More relevant to money market mutual funds, ... back in 2014, we were fortunate enough to partner with Williams Capital at the time, now Siebert Williams Shank (SWS), and it's been a great partnership. It's allowed our liquidity investors to help support these minority and women owned financial firms.... Those share classes have grown exponentially.... To your point, we've been really focused on diversity, as well as equality and inclusion."

Our "Worldwide" piece states, "ICI published 'Worldwide Regulated Open-Fund Assets and Flows, Q1'22,' which shows that money fund assets globally fell by $198.0 billion, or -2.2%, in Q1'22 to $8.635 trillion. The decreases were led by drops in money funds in the U.S., France and Luxembourg. Meanwhile, money funds in China and Brazil increased. MMF assets worldwide increased by $156.4 billion, or 1.8%, in the 12 months through 3/31/22, and money funds in the U.S. represent 53.2% of worldwide assets. We review the latest Worldwide MMF totals, below."

ICI's release says, "Worldwide regulated open-end fund assets decreased 4.6% to $67.80 trillion at the end of the first quarter of 2022, excluding funds of funds. Worldwide net cash inflow to all funds was $81 billion in the first quarter, compared with $1.1 trillion of net inflows in the fourth quarter of 2021. 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 2022 contains statistics from 46 jurisdictions."

MFI also includes the News brief, "Money Fund Yields Hit 1.2%, Top Funds Over 1.5%; Sweeps Up to 0.15%." It tells readers, "Money market fund yields doubled in June, driven by the Fed's 75 bps rate hike June 15. They continue to grind higher, and should jump again late this month following the next rate move. The 7-Day Yield Average for our flagship Crane 100 Money Fund Index rose by 59 bps to 1.18% last month (it has since risen to 1.2%). Brokerage sweep rates also jumped as Fidelity and others hiked FDIC insured sweep rates."

Another News brief, "Assets Rebound in June," explains, "MFI XLS shows assets rising $31.9 billion in June to $4.996 trillion (after falling $14.7 billion in May and $69.4 billion in April). YTD, MMFs are down by $175.2 billion, or 3.4%. ICI's new weekly 'Money Market Fund Assets' report shows assets up in the latest week."

A sidebar, "Fed Z.1 Shows Big Drop in Household, Business MMFs," states, "The Federal Reserve's First Quarter 2022 'Z.1 Financial Accounts of the United States <i:https://www.federalreserve.gov/releases/z1/default.htm>`_' statistical survey shows that Total MMF Assets decreased by $115 billion to $5.091 trillion in Q1'22. The Household Sector, by far the largest investor segment, saw the biggest asset decrease in Q1. The second largest segment, Nonfinancial Corporate Businesses, also experienced a drop in assets."

Finally, another sidebar, "MSRB: Muni MMFs Shrink," explains, "A press release, '`MSRB Research Reveals Significant Shifts in Municipal Securities Ownership,' explains, '[T]he `Municipal Securities Rulemaking Board (MSRB) examines trends in municipal securities ownership since 2004, revealing a continuous decline in individual investor direct ownership of municipal securities while ownership through funds has steadily risen.... [T]he MSRB found that ownership among banks, insurance companies, money market funds and foreign investors has also shifted."

Our July MFI XLS, with June 30 data, shows total assets increased $31.9 billion to $4.996 trillion, after decreasing $10.7 billion in May and $74.3 billion in April. MMFs increased $24.1 billion in March, decreased $34.6 billion in February and decreased $128.1 billion in January. Assets increased $104.6 billion in December, $49.7 billion in November and $20.5 billion October. MMFs also increased $878 million in September and $27.9 billion in August. Our broad Crane Money Fund Average 7-Day Yield was up 50 bps to 0.97%, and our Crane 100 Money Fund Index (the 100 largest taxable funds) was up 59 bps to 1.18% in June.

On a Gross Yield Basis (7-Day) (before expenses are taken out), the Crane MFA and the Crane 100 both were both higher at 1.33% and 1.44%, respectively. Charged Expenses averaged 0.38% and 0.26% for the Crane MFA and the Crane 100. (We'll revise expenses on Monday once we upload the SEC's Form N-MFP data for 6/30/22.) The average WAM (weighted average maturity) for the Crane MFA was a record low 23 days (down 2 days from previous month) while the Crane 100 WAM decreased 1 day to 24 days. (See our Crane Index or craneindexes.xlsx history file for more on our averages.)