Money funds holdings of commercial paper continued declining in the latest month, falling to 25.0% of taxable holdings. Repurchase agreements also dropped sharply in April, the latest month's statistics available from the Investment Company Institute, to 19.2%. U.S. Government agency securities increased, from 10.6% to 11.7%, on the month, while most other holdings remained relatively stable. T-Bills and Treasury securities continued growing; they now represent 9.7% of holdings.

Money market mutual funds held $736.4 billion (25.0%) in CP at the end of April, $567.0 billion (19.2%) in repo, $344.3 billion (11.7%) in Govt agencies, $321.4 billion (10.9%) in corporate notes, $281.8 billion (9.6%) in CDs, $212.7 billion (7.2%) in T-bills, $159.8 billion (5.4%) in Eurodollar CDs, $155.9 billion (5.3%) in "Other" securities (which includes bankers' acceptances and cash reserves), $95.2 billion (3.2%) in bank notes, and $72.5 billion (2.5%) in other Treasury securities.

Though money funds' CP holdings declined in the month, they still increased by $71.6 billion over the past year. But their percentage of total portfolios fell, from 32.3% to 25.0%. Money funds now own approximately 42% of the $1.758 trillion commercial paper market. Asset-backed CP accounts for about 44% of the overall CP market, as of April 2008 (according to the Federal Reserve Board's seasonally adjusted CP Supply totals).

Corporate notes rebounded slightly in April, rising from 10.8% to 10.9%, but they too suffered a steep decline from their year ago level (16.4%). Government agency securities increased their percentage the most, rising from 5.9% to 11.7%. T-Bills too took a big leap, rising from 3.1% to 7.2% over the year through April 2008.

Email This Article




Use a comma or a semicolon to separate

captcha image

Money Market News Archive

2024
March
February
January
2023
December
November
October
September
August
July
June
May
April
March
February
January
2022
December
November
October
September
August
July
June
May
April
March
February
January
2021
December
November
October
September
August
July
June
May
April
March
February
January
2020
December
November
October
September
August
July
June
May
April
March
February
January
2019
December
November
October
September
August
July
June
May
April
March
February
January
2018
December
November
October
September
August
July
June
May
April
March
February
January
2017
December
November
October
September
August
July
June
May
April
March
February
January
2016
December
November
October
September
August
July
June
May
April
March
February
January
2015
December
November
October
September
August
July
June
May
April
March
February
January
2014
December
November
October
September
August
July
June
May
April
March
February
January
2013
December
November
October
September
August
July
June
May
April
March
February
January
2012
December
November
October
September
August
July
June
May
April
March
February
January
2011
December
November
October
September
August
July
June
May
April
March
February
January
2010
December
November
October
September
August
July
June
May
April
March
February
January
2009
December
November
October
September
August
July
June
May
April
March
February
January
2008
December
November
October
September
August
July
June
May
April
March
February
January
2007
December
November
October
September
August
July
June
May
April
March
February
January
2006
December
November
October
September