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A press release entitled, "Record $1 Trillion Daily Balance Reached on GLMX as Adoption of Electronic Trading for Securities Finance Accelerates," states, "GLMX Technologies LLC ('GLMX'), a comprehensive global technology solution for trading Money Market instruments, including repurchase agreements and securities lending transactions, yesterday eclipsed $1 Trillion in daily balances for the first time. These balances represent the trading activity of some of the largest global financial institutions which utilize GLMX technology to negotiate and execute securities financing transactions (SFTs). Since inception, GLMX has seen $120 Trillion in volume executed via its technology." Glenn Havlicek, CEO and Co-Founder of GLMX, tells us, "The $1 trillion mark is a major milestone for GLMX, and reflects the powerful and ongoing technology shift in the overall securities finance industry. Achieving this number, seemingly unreachable a few years ago, is testament to the hard work done by the talented team at GLMX and the commitment of our network of leading market participants who use our technology every day." COO sal Giglio comments, "GLMX has established itself as the leader in Dealer-to-Client (D2C) electronic negotiation and execution of securities finance transactions and our firm has played a significant role in defining the sector. We have seen adoption of GLMX trading technology increase dramatically over the past two years as many dealers and buy-side firms now view electronic trading as a prerequisite to establishing a comprehensive trading relationship." Chief Product Officer Andy Wiblin adds, "Growth has been driven by existing and new client activity globally across a diverse collateral set, with the balance split equally between flow coming from North America and that from EMEA." Havlicek also says, "Money Markets are a massive and globally overlapping ecosystem. And while the move to digitalization in those markets appears to have passed the tipping point, there is still enormous work to be done. GLMX is thrilled to be part of that evolution."

T. Rowe Price gives us, "4 Reasons to Save in a Money Market Fund." The article explains, "Money market funds may provide potentially higher growth potential than a bank savings account and more flexibility than certificates of deposit (CDs). If you have an investment goal, you likely know when you're going to need the money and how long you'll need it to last. If you're saving for a goal that falls within the next three to five years, saving in a lower-risk investment such as a money market fund, bank savings account, or CD may make sense for you. Money market funds don't have the growth potential of stock or bond funds; however, they are a more stable investment and can be especially useful for immediate to short-term savings goals that you don't want impacted by market volatility." After explaining, "`What is a money market fund?" the piece discusses, "Why do people invest in money market funds?" The reasons include: "1. Money market funds are useful for short-term goals such as saving for a vacation, a wedding, or a down payment for a house. In these cases, it may be more important that your savings hold their value over the shorter time period. 2. Maintaining an emergency reserve. Having money outside of retirement accounts can act as a personal safety net to get through financial hurdles, such as a period of unemployment or an unbudgeted large expense. We recommend an amount that could cover three to six months of expenses. The accessibility of money market funds makes them a good option. 3. Cover larger, regular expenses. For example, many people pay property taxes, insurance premiums, or other larger expenses on an annual or semi-annual basis using the checkwriting feature. An account earmarked for this purpose means there's no surprise when those bills come due. 4. A money market fund may also be used as a place to park assets, such as an IRA rollover, or transfer while trying to decide how to invest those funds for the long term." Finally, T. Rowe Price asks, "How safe are money market funds?" They reply, "There is little risk associated with money market funds. The Securities and Exchange Commission (SEC) mandates that only the highest credit rated securities are available in money market funds. While money market funds are considered to be one of the safest investments, they have dipped below the target share value of $1 (known as 'breaking the buck') during a few volatile markets or due to changes in inflation and interest rates, but have quickly recovered."

A press release entitled, "State Street Launches Venturi to Support Peer-to-Peer Financing," tells us, "State Street Corporation (NYSE: STT) today announced the launch of the firm's new peer-to-peer financing platform, Venturi, specifically designed to connect buy-side firms with new sources of liquidity in the global repo space. Venturi, built through a partnership with FinOptSys, a cutting edge FinTech focused on the securities financing market, supports trade negotiations and enhances trade settlement and collateral management, allowing traders to better manage and diversify their counterparty exposure." Gino Timperio, global head of Financing Solutions, says, "As a result of elevated market volatility and the changing liquidity and rate environment, buy-side firms are increasingly seeking new and diversified sources of financing. We are excited to further expand our product suite with the launch of Venturi to help foster the growth of and scale the peer-to-peer marketplace. Akin to our 2005 launch of FICC's Sponsored Repo Service, which has also provided our clients with critically needed liquidity solutions, we believe Venturi will empower our clients to discover new liquidity pools and make better, data-driven investment decisions. The launch of this platform -- designed in large part through extensive development and feedback from our clients -- is certainly a very noteworthy milestone for our business and the evolution of our peer-to-peer initiatives." The release tells us, "Venturi was built to provide clients: Increased Efficiency: Users negotiate economic terms of peer repo transactions on Venturi. A program master repo agreement streamlines the documentation process and supports ready scalability. Users may engage with any or all counterparties active on the platform. Improved Flexibility: Venturi supports a flexible suite of eligible collateral and margin requirements; Seamless Confirmation of State Street's Guaranty to Repo Buyers: Venturi allows buy-side participants to seamlessly submit and confirm the repo transaction terms satisfy the criteria necessary for State Street to guarantee the repurchase price payment obligations of the repo seller to the repo buyer following a repo seller default. State Street's short-term credit rating: A+/AA1; and, Transparency of trade and margin call settlement: With links to State Street's Collateral+ Triparty Solution for Peer-to-Peer Repo, Venturi displays confirmed trade matches, collateral valuation and margin calls, and collateral movements between counterparties. In helping to centralize liquidity pools and enhance transparency, Venturi seeks to open up for the buy-side new trading opportunities, lower their transaction costs and improve their returns."

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 Nov. 25) includes Holdings information from 68 money funds (up 23 from a week ago), which represent $1.967 trillion (up from $1.474 trillion) of the $5.080 trillion (38.7%) in total money fund assets tracked by Crane Data. (Our Weekly MFPH are e-mail only and aren't available on the website.) Our latest Weekly MFPH Composition summary again shows Government assets dominating the holdings list with Repurchase Agreements (Repo) totaling $1.115 trillion (up from $848.2 billion a week ago), or 56.7%; Treasuries totaling $542.0 billion (up from $421.8 billion a week ago), or 27.5%, and Government Agency securities totaling $140.0 billion (up from $89.2 billion), or 7.1%. Commercial Paper (CP) totaled $66.5 billion (up from a week ago at $49.8 billion), or 3.4%. Certificates of Deposit (CDs) totaled $32.0 billion (up from $22.7 billion a week ago), or 1.6%. The Other category accounted for $48.7 billion or 2.5%, while VRDNs accounted for 23.4 billion, or 1.2%. The Ten Largest Issuers in our Weekly Holdings product include: the Federal Reserve Bank of New York with $771.8 billion (39.2%), the US Treasury with $542.0 billion (27.5% of total holdings), Federal Home Loan Bank with $82.8B (4.2%), Fixed Income Clearing Corp with $71.3B (3.6%), Federal Farm Credit Bank with $53.3B (2.7%), JP Morgan with $33.3B (1.7%), RBC with $26.1B (1.3%), Barclays PLC with $25.0B (1.3%), Citi with $24.1B (1.2%) and BNP Paribas with $22.3B (1.1%). The Ten Largest Funds tracked in our latest Weekly include: Morgan Stanley Inst Liq Govt ($136.5B), Federated Hermes Govt ObI ($132.6B), BlackRock Lq FedFund ($130.7B), Fidelity Inv MM: Govt Port ($124.7B), BlackRock Lq Treas Tr ($106.8B), Dreyfus Govt Cash Mgmt ($106.3B), Allspring Govt MM ($100.7B), BlackRock Lq T-Fund ($91.4B), State Street Inst US Govt ($89.2B) and Fidelity Inv MM: MM Port ($75.2B). (Let us know if you'd like to see our latest domestic U.S. and/or "offshore" Weekly Portfolio Holdings collection and summary.)

Crane Data is preparing for its next Money Fund University "basic training" conference in just over 2 weeks! Our 12th annual MFU will change slightly from its previous basics 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're also hosting Crane Data's Holiday Party at MFU on Dec. 15 from 5-7pm, so please join us!) 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 `extra session on proposed regulations and an extended free training session for Crane Data clients. 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.) Also, join us for our next Bond Fund Symposium, which be held in Boston, Mass., on March 23-24, 2023. 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 Boston next month or in March 2023, or in Atlanta in June 2023.

The Federal Reserve published its "Minutes of the Federal Open Market Committee, November 1-2, 2022," last week, which contained several references to money market funds and repo. Discussing "developments in money markets and Federal Reserve operations," they comment, "Usage of the overnight reverse repurchase agreement (ON RRP) facility remained fairly steady other than during the period surrounding quarter-end. In the period ahead, the relative pace of decline in ON RRP facility balances and reserve balances would depend importantly on shifts in money market conditions. Recent developments, including with regard to the relationship between ON RRP facility balances and money market rates, suggested that, over time, conditions could evolve in a manner that would lead to falling usage of the ON RRP facility. However, the manager pro tem noted that money market conditions could change somewhat more quickly in the lead-up to year-end because of normal factors, such as a Treasury tax payment date in December that could increase the Treasury General Account balance, and year-end position adjustments. This prospect could require money market participants to be more responsive to shifting liquidity conditions and to plan ahead for the coming period. Current market quotes suggested expectations of limited upward pressure on domestic money market rates around year-end. In offshore dollar funding markets, the premium associated with borrowing dollars was modestly higher than at similar points in previous years." The Minutes also say, "Conditions in short-term funding markets remained stable over the intermeeting period, with the September increase in the target range for the federal funds rate and the associated increases in the Federal Reserve's administered rates passing through quickly to overnight money market rates. In secured markets, money market rates remained soft relative to the ON RRP offering rate, attributed to subdued Treasury bill supply, elevated demand for Treasury collateral, and investor demand for very short-term assets amid uncertainty over the pace of policy rate increases. Daily take-up in the ON RRP facility remained elevated amid this softness in repurchase agreement rates. Money market fund net yields rose along with the rise in administered rates, while retail bank deposit rates increased modestly on balance."

The Wall Street Journal posted a video entitled, "Why Your Bank's Savings Rate Isn't Increasing With the Fed's," which says, "The Federal Reserve's interest rate continues to climb, reaching nearly 4% in November. But the average savings account's interest rate is just 0.16%. Here's how banks determine that rate — and which accounts are paying closer to the Fed's." They ask, "But what about the interest rates that make you money, like on your savings accounts? Right now the average savings account pays less than a quarter of a percent, but some savings rates are going up.... Here's why most savings rates and which ones aren't."

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 Nov. 18) includes Holdings information from 45 money funds (unchanged from a week ago), which represent $1.474 trillion (up from $1.319 trillion) of the $5.055 trillion (29.2%) in total money fund assets tracked by Crane Data. (Our Weekly MFPH are e-mail only and aren't available on the website.) Our latest Weekly MFPH Composition summary again shows Government assets dominating the holdings list with Repurchase Agreements (Repo) totaling $848.2 billion (up from $773.4 billion a week ago), or 57.6%; Treasuries totaling $421.8 billion (up from $347.8 billion a week ago), or 28.6%, and Government Agency securities totaling $89.2 billion (down from $93.9 billion), or 6.1%. Commercial Paper (CP) totaled $49.8 billion (up from a week ago at $45.4 billion), or 3.4%. Certificates of Deposit (CDs) totaled $22.7 billion (up from $21.8 billion a week ago), or 1.5%. The Other category accounted for $27.9 billion or 1.9%, while VRDNs accounted for 13.9 billion, or 0.9%. The Ten Largest Issuers in our Weekly Holdings product include: the Federal Reserve Bank of New York with $627.1 billion (42.6%), the US Treasury with $421.8 billion (28.6% of total holdings), Federal Home Loan Bank with $53.0B (3.6%), Fixed Income Clearing Corp with $43.2B (2.9%), Federal Farm Credit Bank with $32.9B (2.2%), Barclays PLC with $21.8B (1.5%), JP Morgan with $20.9B (1.4%), RBC with $17.2B (1.2%), BNP Paribas with $16.9B (1.1%) and Citi with $14.8B (1.0%). The Ten Largest Funds tracked in our latest Weekly include: Morgan Stanley Inst Liq Govt ($139.7B), BlackRock Lq FedFund ($135.8B), Fidelity Inv MM: Govt Port ($123.1B), BlackRock Lq Treas Tr ($117.3B), Allspring Govt MM ($105.2B), BlackRock Lq T-Fund ($98.0B), State Street Inst US Govt ($90.9B), Fidelity Inv MM: MM Port ($73.6B), First American Govt Oblg ($72.1B) and Invesco Govt & Agency ($69.1B). (Let us know if you'd like to see our latest domestic U.S. and/or "offshore" Weekly Portfolio Holdings collection and summary.)

Money fund yields were higher yet again last week -- our Crane 100 Money Fund Index (7-Day Yield) rose 5 basis points to 3.54% in the week ended Friday, 11/18. Yields rose by 36 basis points the previous week and are up from 2.88% on Oct. 31 and 2.66% on Sept. 30. Yields should continue to inch higher as they digest the remainder of the Fed's Nov. 2nd 75 bps rate hike, and they should hit 4.0% by year end, if, as expected, the Fed hikes rates again on Dec. 14. The top-yielding money market funds are already touching 4.0% though (see our "`Highest-Yielding Money Funds" table above) <b:>`_. Our broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 677), shows a 7-day yield of 3.41%, up 6 bps in the week through Friday. Prime Inst MFs were up 6 bps to 3.69% in the latest week. Government Inst MFs rose by 3 bps to 3.40%. Treasury Inst MFs up 7 bps for the week at 3.40%. Treasury Retail MFs currently yield 3.20%, Government Retail MFs yield 3.19%, and Prime Retail MFs yield 3.54%, Tax-exempt MF 7-day yields were down at 1.65%. According to Monday's Money Fund Intelligence Daily, with data as of Friday (11/18), 133 funds (out of 816 total) still yield between 0.00% and 1.99% with assets of $111.2 billion, or 2.2% of total assets; 75 funds yielded between 2.00% and 2.99% with $98.2 billion, or 1.9%; 608 funds yield 3.00% or more ($4.846 trillion, or 95.9%), and 4 funds have now officially broken over the 4.0% yield barrier. Brokerage sweep rates saw a number of changes over the past week. Our Crane Brokerage Sweep Index, the average rate for brokerage sweep clients (almost all of which are swept into FDIC insured accounts; only Fidelity sweeps to a money market fund), was unchanged this past week at 0.40% following a 6 bps jump the previous week. The latest Brokerage Sweep Intelligence, with data as of Nov. 18, shows just one rate change over the previous week. Wells Fargo increased rates to 0.15% for all balances between $1 and $999K, to 0.50% for all balances between $1 million and $1.9 million and to 0.85% for all balances between $5 million and $9.9 million. Just 3 of 11 major brokerages still offer rates of 0.01% for balances of $100K (and lower tiers). These include: E*Trade, Merrill Lynch and Morgan Stanley.

S&P Global published the brief, "U.S. Domestic 'AAAm' Money Market Fund Trends (Third-Quarter 2022)," earlier this month, writing, "Growth in rated U.S. government and prime money market funds (MMFs) were mixed during the third quarter of 2022. Assets under management (AUM) in government fund strategies saw a de-minimis decline, resulting in a 0.23% quarter-over-quarter decrease. While prime fund net assets had a modest increase from the previous quarter of 4.46%, this, driven by an increase in prime institutional funds, make money funds more compelling than other asset classes in a rising rate environment." They explain, "Government and prime funds are benefiting from higher-yielding assets. During the third quarter, the seven-day and 30-day net yields for government funds grew to 2.64% and 2.25%, respectively. The seven-day and 30-day net yield for prime funds jumped to 2.75% and 2.378%, respectively. The spread between government and prime funds continued to be in a range of 10bps–15 bps. Repo exposure in government funds continues to see a greater allocation by fund managers. During the quarter, the Fed's reverse repurchase facility exceeded the prior quarter month end at $2.4 trillion. Government funds also had a modest increase in agency and Treasury floaters, while Treasury bills had lower allocation in the funds, primarily because of lower supply." S&P adds, "Managers of government and prime strategies continue to remain short. Although predictions on where the terminal rate will end up and the exact level of rate hikes vary, the funds' maturity profiles remain conservative until they are convinced that the Fed is closer to the end of its tightening cycle. Weighted average maturities moved downward by eight days for government funds and five days for prime funds. Despite the rapid rise in rates by the Fed's tightening by 150 bps during the quarter, the distribution of net asset values (NAV per share) for funds has been narrower, with only one rated fund pricing below 0.9985. As a result, we increased our surveillance to daily for this fund. It has remained within all of our metrics for 'AAAm' principal stability fund ratings (PSFRs) during the observed period. Funds appear to be mitigating the price volatility by remaining shorter in duration and higher in credit quality."

ICI's latest weekly "Money Market Fund Assets" report shows money fund assets rising the past week after dropping last week but skyrocketing in the first week of November and Retail money fund assets breaking above the $1.6 trillion level for the first time ever. Over the past 52 weeks, money fund assets are up by $49 billion, or 1.1%, with Retail MMFs rising by $169 billion (11.8%) and Inst MMFs falling by $120 billion (-3.8%). ICI shows assets down by $80 billion, or -1.7%, year-to-date, with Institutional MMFs down $214 billion, or -6.6% and Retail MMFs up $133 billion, or 9.1%. The weekly release says, "Total money market fund assets increased by $3.44 billion to $4.62 trillion for the week ended Wednesday, November 16, the Investment Company Institute reported.... Among taxable money market funds, government funds decreased by $8.10 billion and prime funds increased by $12.16 billion. Tax-exempt money market funds decreased by $615 million. Due to the upcoming Thanksgiving holiday on Thursday, November 24, data for the week ending November 22 will be available on Wednesday, November 23." ICI's stats show Institutional MMFs falling $8.4 billion and Retail MMFs increasing $11.8 billion in the latest week. Total Government MMF assets, including Treasury funds, were $3.919 trillion (84.7% of all money funds), while Total Prime MMFs were $592.9 billion (12.8%). Tax Exempt MMFs totaled $113.1 billion (2.4%). ICI explains, "Assets of retail money market funds increased by $11.80 billion to $1.60 trillion. Among retail funds, government money market fund assets increased by $4.44 billion to $1.14 trillion, prime money market fund assets increased by $7.95 billion to $356.90 billion, and tax-exempt fund assets decreased by $589 million to $100.44 billion." Retail assets account for over a third of total assets, or 34.6%, and Government Retail assets make up 71.5% of all Retail MMFs. They add, "Assets of institutional money market funds decreased by $8.37 billion to $3.02 trillion. Among institutional funds, government money market fund assets decreased by $12.54 billion to $2.77 trillion, prime money market fund assets increased by $4.20 billion to $235.97 billion, and tax-exempt fund assets decreased by $26 million to $12.64 billion." Institutional assets accounted for 65.4% of all MMF assets, with Government Institutional assets making up 91.8% of all Institutional MMF totals. (Note that ICI's asset totals don't include a number of funds tracked by the SEC and Crane Data, so they're over $400 billion lower than Crane's asset series.) For the month of November through 11/16, MMF assets increased by $13.0 billion to $5.067 trillion according to Crane's MFI XLS, which tracks a broader universe of funds than ICI. Crane Data's Prime asset totals, which broke the $1.0 trillion level two weeks ago, increased $23.7 billion MTD (and $26.8 billion in October) to $1.019 trillion. Given that November and December are the two strongest months of the year seasonally, we expect big inflows in the coming weeks.

Fidelity Investments recently posted a "Q3 2022 Fixed Income Perspectives Video" featuring Julian Potenza, co-manager of Fidelity Limited Term Bond Fund, Fidelity Sustainable Low Duration Bond Fund, Fidelity Conservative Income Bond Fund, Fidelity Short-Term Bond Fund and a number of other bond funds. He "discusses another challenging quarter in the fixed income markets," and tells viewers, "Turning to the numbers, the sharp rise in yields drove another tough performance quarter in the bond markets. The US investment grade bond market, as measured by the Bloomberg Aggregate Bond Index, was down 4.75% in the quarter, while US Treasuries were down 4.35%. Investment grade corporates were down over 5%, while high yield outperformed down just 0.65%. Given the dramatic moves this year, how should investors be thinking about the fixed income markets at this point in the cycle?" Potenza continues, "To start, it is worth recognizing the significant repricing that has occurred this year. I often look at real interest rates or interest rates after expected inflation is removed to gauge the stance of monetary policy. In the U.S., five-year real interest rates rose from about 40 basis points at the start of the third quarter to just under 2% at the end. For context, that is almost 1% higher than the peak of the last tightening cycle and up almost 4% from the post-pandemic lows, of 4% adjustment in real interest rates is a major change to the economic ecosystem and much of the adjustment is fairly recent. It is likely enough to slow the more interest sensitive sectors of the economy, such as housing. While the Fed may well continue hiking to control the inflation situation. The adjustment in real rates suggests that the balance of risks between higher inflation and lower growth may start to tilt towards lower growth, which could raise the diversification value of bonds in your portfolio."

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