money market funds

BNP Paribas is trying to change this by encouraging customers to move out of money-market funds into deposits.

In the boom it was easy to fill the gap by tapping American money- market funds or securitisation markets .

These investors seem to regard money market funds as another option to savings accounts in banks and savings and loan institutions.

However, most of the money went into money market funds, with only 30 per cent of registered funds benefiting from a net inflow.

Losses on Lehman debt forced several money-market funds to "break the buck" , triggering a flight out of short-term commercial paper.

As the Financial Times reported on Wednesday, money market funds have begun to hoard cash in case they have to meet a surge of redemptions.

On the downside, women tend to put more of their portfolios into bonds and money market funds, curbing returns in a bull market.

True, Americans are less likely these days to keep their savings in the bank, preferring money-market funds.

Analysts said the plunge was driven by shifts in asset allocation by the large money market funds, which hold $2, 700bn in assets.

What they have been doing is responding rationally by moving out of money-market funds.

Concerns in financial markets spread this week even to money market funds -- normally considered among the safest investments.

There was a run on money market funds after one big money-market fund revealed that it owned a lot of suddenly worthless Lehman debt.

By Thursday a run on money market funds was in full swing and we came as close to a meltdown as at any time since the 1930s.

The U. S. government stepped in during the financial crisis to protect money-market funds against any losses.

Some central bankers have also argued that negative interest rates would kill the business model of money market funds.

The exodus out of money-market funds is taking a big chunk out of the 'commercial paper' market, a vital source of financing for companies.

Local retail customers are fickle: the surge of money into equities this quarter partly reflects outflows from money market funds.

On a few occasions we did provide financial support for our money market funds. But that support was limited and discreet.

U. S. money-market funds still total $3. 3 trillion in assets, even though investors have pulled $113 billion out in the last three months.

At a birthday party for a wealthy friend in Omaha, several guests asked Mr. Buffett if their money-market funds were safe.

It could present problems for money market funds and for the repo market which has technical difficulties operating near zero rates.

The most important of these recommendations are directed at the tri-party repo markets and the money market funds.

Stronger supervision of money market funds to avert the risk of failure due to rapid withdrawals.

By that weekend, more than $200bn had been pulled from money market funds, by both retail and institutional investors.

University of Berlin, Master Degree with a thesis on the impact of money market funds on monetary policy and financial markets.

The Fed has effectively stepped in to guarantee the money market funds, but confidence has been shaken.

Fitch, a ratings agency, reckons that roughly half the cash entrusted to big American money-market funds is lent on to European banks.

That will keep rates on money market funds near their record lows of less than one percent.

Meanwhile corporate borrowers have found it hard to issue commercial paper, as money-market funds have fled from all but the safest assets.

Pension and money-market funds are restricted from holding lowly rated securities; banks get capital relief for holding highly rated ones.

Money-market funds, which invested heavily in securitised products, will also be more constrained.

Banks grew even less willing to lend to each other on Monday, and money-market funds fled anything with a whiff of risk.

South Korea posted the strongest net inflows of $29bn for the period, driven by a shift into local currency money market funds.

With interest rates close to zero, money-market funds cannot offer a decent return.

Money market funds would be prohibited from buying illiquid securities under the proposals.

Four years ago, the giant US money market funds seemed some of the dullest actors in the global financial scene.

Short-term bonds, capital preservation-based savings and money market funds holding ratio than previous increases.

If money-market funds keep the break-the-buck promise, they are likely to move into more liquid asset classes than securitised products.

American money-market funds have almost completely withdrawn dollar funding from European banks over the past few months.

Will the Fed then extend to deposit insurance to hedge funds too as it did for money market funds?

However, money market funds suffered significant redemptions as investors fled to the safety of bank deposits.

Long-term bond issues have become scarce and American money-market funds, hitherto buyers of short-term bank bills, are running scared.

Investors have also been moving out of safe-haven money market funds.

That implies 'no effect on money-market funds, ' Goldman Sachs economists wrote in a note late Friday.

And some traditional investors have deserted bank debt: Money-market funds and banks are no longer such eager players.

Similar proposals are expected on investments by money-market funds and capital standards for brokers.

Investors have stepped up the pace at which they withdraw capital from safe money market funds.

Money-market funds have recently been busy swapping Treasuries, especially one-month bills, for cash.

Money market funds saw sizeable outflows in the second quarter as a modicum of appetite for risk returned.

Investors are quickly learning that in the current crisis almost nothing is safe, even U. S. money market funds.

The bears feel safer keeping exceptionally large amounts of cash in money-market funds and Treasury bonds.

Money-market funds are a vital source of short-term funding for companies, banks and governments.

Just days before, the jobs, income, 401(k)'s and money-market funds of these citizens had seemed secure.

Money market funds' popularity rested on their reputation for being almost as secure as bank deposits.

A default could trigger demands by lenders like money-market funds for more or different collateral.

Money market funds with exposure to complex securities run by BNP Paribasand others shut their doors to investors wanting their cash back.

European money market funds, too, continue to reduce their exposure to France, Italy and Spain, according to the latest numbers from Fitch.

They are moving more cash to safety in bank accounts, money-market funds and Treasurys, despite declining interest rates.

Banks and other financial institutions may raise the rates they pay on savers' certificates of deposit and money market funds.

What the US government might do to support the US money market funds if American debt is downgraded, or suffers a technical default?

Nor can they allay fear about the non-bank parts of the system, such as money market funds.

Although they are not compelled to do so, those companies are almost certain to step in to prevent any losses in their money market funds.

Money-market funds, like banks, might argue their holdings are sound if the default is brief.

No less worrying are the cracks appearing in money-market funds.

That caused panic among depositors : by Thursday a run on money market funds was in full swing.

American money-market funds, an important source of short-term borrowing for European banks, are stealing away.

That partly explains why money was initially funneled into bond and money market funds.

That is what happened at the start of this week as money-market funds sold these IOUs, causing rates to spike as never before (see chart).

But progress has been slow in the all-important areas of money market funds or the repo world.

Money-market funds pay puny returns today, but some say investors should hold cash amounting to six to 12 months of living expenses.

Thus the proposal also includes reforms to reduce volatility caused by wholesale funding through money market funds and repos.

EPFR estimates that outflows from money market funds have totalled more than $388 billion year-to-date.

Fitch Ratings estimates that U. S. money market funds' exposure to European banks stand at roughly 50 percent of total assets.

American money market funds, in particular, have pulled back from Europe.

The largest retail money-market funds are the Fidelity Cash Reserves and Vanguard Prime Money Market Fund, according to iMoney. net.

IMF current yield levels in the domestic money market funds in the history of relatively rare.

Retail investors have close to $13, 000bn sitting in money market funds and bank deposits.

Money market funds typically hold a mix of short-term corporate bonds, Treasury bills, and other high-quality debt.

They are putting their money into cash or money-market funds, rather than equities or corporate bonds.

Money-market funds, by some estimates, hold more than 40% of U. S. commercial paper outstanding.

One reason is that American money-market funds are warily shifting their money out of Europe.

These funds managed are managed like money market funds which try to keep a net asset value of $1.

"The tax-exempt money-market funds are just afraid to lend, " says Mr. MacIntosh.

When Lehman Brothers collapsed in September 2008, for example, there was an unexpected run on money-market funds.

Money-market funds have regained their health and are again growing.

Barker said this could be tricky for money market funds.

Money-market funds themselves hold another $338 billion of Treasuries.

The issue is what kind of quid pro quo money-market funds will now face.

Concerns are now being raised about money market funds.

Bankruptcies would cause chaos among depositors and lenders to banks such as money-market funds, insurance firms and foreign governments.

Bankruptcies would cause chaos among depositors and lenders to banks such as money-market funds, insurance firms and foreign governments.

Since May, American money-market funds have cut their exposure to European banks by 42%, according to Fitch, a ratings agency.

Optimists point to the record $1. 6 trillion that American firms have on deposit, in money-market funds, and in bonds and bills.

But it is worth watching what those money market funds do next.

Money market funds invest in highly liquid securities such as US Treasuries and short-term debt issued by financial institutions.

With $3. 4 trillion of assets under management, allowing a run on money-market funds was unthinkable.

The Fed will also extend loans to banks to buy asset-backed commercial paper from money-market funds that face redemptions.

That caused such shock that investors such as money market funds stopped purchasing notes issued by shadowy entities such as SIVs.

Fidelity, for one, had net redemptions of $32bn (excluding money market funds) in the 12 months to February, according to Morningstar.

Money market funds may invest in cash , call deposits and deposits within 1 year (including 1 year).

The value of money-market funds exceeded stock funds earlier this month for the first time in 16 years.

From 2007 to January 2009, $1, 500bn flowed into US money market funds out of more risky assets.

And what about money-market funds?

Some $62 billion has left money market funds in the past two weeks, according to the Investment Company Institute.

Safe-haven money-market funds, meanwhile, saw inflows of $16. 6 billion. That broke a 17-week streak of declines.

In many ways, the liquidity crisis was worse than the loss, since many people rely on money-market funds for their short-term cash needs.

Money market funds are avoiding the one-month treasury notes which mature on August 4 and August 11.

As of August, a total of $3. 5 trillion is sitting in money market funds.

Their destination: safer havens such as bond and money-market funds.

Money market funds had net inflows of $5 billion in the week to July 22, according to EPFR Global.

Money-market funds and banks are deeply suspicious about whom they can entrust their money to.

European banks also need dollars to repay past borrowings they made in dollars, such as loans from U. S. money-market funds.

For the first time in almost 20 years there is also more invested in low-yielding US money market funds than in equities.

In America, money-market funds yield around 0. 1% after fees, so an investor with $100, 000 receives just $100 in annual interest.

Administration of Money Market Funds Tentative Provisions

Current Status of Money Market Funds in Europe

Pension and money-market funds are restricted from holding lowly rated securities;

A Study on Some Legal Problems Related to the Money Market Funds

Circular on Issues concerning Bank Deposit Investment by Money Market Funds

Money market funds emerged that undermined deposit accounts in banks;

Money Market Funds Automatic Redemption and Payments

Money-market funds to be launched in China

The banks set up money market funds