September 26, 2016
Floating Asset Values Are Killing Non-Govt MMFs
Posted by David Zaring

I'm not sure whether to call it the power of regulation, the fact that investors like being deluded about the value of assets they hold, or the existence of an implicit government guarantee.  But as OFR notes, investors are getting out of funds with gates and floating asset values, and getting into funds with fixed asset values (even if they also have feeds and gates).  Not sure what to make of it, but the change is marked, and surely attributable to regulation.

A chart of Total investments by category comparing prime retail and prime institutional funds from January 2011 through August 2016. Prime institutional funds are not present until mid 2016 when they represent the majority of total investments

Administrative Law, Finance, Financial Institutions | Bookmark

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