Bond Buyer on MMF Bill S.733
The Bond Buyer published "New life for money market mutual fund fix," which says, "A bill that issuers of municipal bonds say would both lower their borrowing costs and give them more investing flexibility is back on the table after failing to become law in the previous Congress. Earlier this week, Sen. Pat Toomey, R-Pa. introduced S.733, the Consumer Financial Choice and Capital Markets Protection Act, which is identical to a bill introduced in 2017. The bill would allow institutional money market funds to return to a fixed net asset value after a 2014 SEC rule change, which required those MMMFs to use a floating NAV." The piece quotes `GFOA's Emily Brock in a "GFOA letter in support of the bill," "S. 733 would restore the ability of state and local governments to use prime and municipal stable NAV funds for their essential and critical investment needs.... Forcing governments to find alternative investments to prime and municipal MMMFs creates additional risk for public funds by driving them to lower yielding government funds or potentially less suitable products.... Such options may not meet liquidity standards required by their governments to meet cash management policies and statutes." See also our June 27, 2018, "Link of the Day, "Bond Buyer on Senate's S.1117."
