Bloomberg on MMFs, MF Symposium
Bloomberg writes "Money Funds See $5.5 Trillion Pile Growing as Tool Kit Expands." The piece explains, "The US money-market industry, one of the big winners on Wall Street as the Federal Reserve hiked interest rates, is getting another lift with more tools at its disposal to attract investors and expand its unprecedented mountain of cash. That's the backdrop for Wednesday's kickoff of Crane's Money Fund Symposium, the marquee annual event for a business that has seen assets grow by some $1 trillion in the past year to a record of almost $5.5 trillion. The roughly 450 participants will gather as a crucial debate rages in markets over whether it's time to abandon these ultra-safe funds in favor of stocks or long-maturity bonds." Bloomberg's Alex Harris writes, "The Fed's aggressive tightening has been a boon for money markets, which have drawn investors seeking a haven from volatility and tiring of the skimpy rates on bank accounts. The industry can point to a major change from a year ago that it expects will help it retain that appeal and keep cash rolling in. The key is that money funds now have a range of higher-yielding assets to shift into -- led by Treasury bills after the resolution of June's debt-ceiling impasse. But they also have much more clarity around the Fed's path, so they have less need to hide out in overnight markets, where they still have almost $2 trillion stashed. That means they can buy longer maturities and eke out higher returns." Bloomberg's article adds, "For industry participants assembling in Atlanta this week, the vibe couldn't be more different than a year ago. Back then, the specter of regulatory change was a chief worry, but that threat has yet to materialize. It's also a lucrative time for the business: Revenue for May was a record $15.4 billion on an annualized basis, according to Crane Data <b:>`_."
