Daily Links Archives: June, 2025
MMFs in Retirement Plans Up to $936B
The Investment Company Institute also published, "Retirement Assets Total $43.4 Trillion in First Quarter 2025," which includes data tables showing that money market funds held in retirement accounts jumped to $936 billion (up from $880 billion) in the latest quarter, accounting for 13% of the total $6.975 trillion in money funds. MMFs represent just 7.1% of the total $13.1 trillion of mutual funds in retirement accounts. This release says, "Total US retirement assets were $43.4 trillion as of March 31, 2025, down 1.6 percent from December. Retirement assets accounted for 34 percent of all household financial assets in the United States at the end of March 2025. Assets in individual retirement accounts (IRAs) totaled $16.8 trillion at the end of the first quarter of 2025, a decrease of 1.3 percent from the end of the fourth quarter of 2024." It continues, "Defined contribution (DC) plan assets were $12.2 trillion at the end of the first quarter, down 1.9 percent from December 31, 2024. Government defined benefit (DB) plans—including federal, state, and local government plans -- held $8.9 trillion in assets as of the end of March 2025, down 0.9 percent from the end of December 2024. Private-sector DB plans held $3.2 trillion in assets at the end of the first quarter of 2025, and annuity reserves outside of retirement accounts accounted for another $2.4 trillion." The ICI tables also show money funds accounting for $707 billion, or 11%, of the $6.445 trillion in IRA mutual fund assets and $229 billion, or 3%, of the $6.685 trillion in defined contribution plan holdings. (Money funds in 401k plans totaled $153 billion, or 3% of the $5.341 trillion of mutual funds in 401k's.)
ICI: MMF Assets Rise to $7.03 Trillion
ICI's latest weekly "Money Market Fund Assets" shows money fund assets rising $8.5 billion to $7.015 trillion, after falling $9.3 billion the week prior. Money fund assets remain just below their record level of $7.032 trillion set on April 2. They've increased by $711.5 billion (or 11.3%) since the Fed last cut rates on 9/18/24 and increasing by $1.038 trillion (or 17.4%) since 4/24/24. MMF assets are up by $917 billion, or 15.0%, in the past 52 weeks (through 6/18/25), with Institutional MMFs up $482 billion, or 13.2% and Retail MMFs up $435 billion, or 17.7%. Year-to-date, MMF assets are up by just $165 billion, or 2.4%, with Institutional MMFs up $8 billion, or 0.2% and Retail MMFs up $156 billion, or 5.7%. ICI's weekly release says, "Total money market fund assets increased by $8.50 billion to $7.02 trillion for the six-day period ended Tuesday, June 17.... Among taxable money market funds, government funds increased by $5.87 billion and prime funds increased by $1.46 billion. Tax-exempt money market funds increased by $1.17 billion." ICI's stats show Institutional MMFs increasing $3.9 billion and Retail MMFs increasing $4.6 billion in the latest week. Total Government MMF assets, including Treasury funds, were $5.715 trillion (81.5% of all money funds), while Total Prime MMFs were $1.160 trillion (16.5%). Tax Exempt MMFs totaled $139.2 billion (2.0%). It explains, "Assets of retail money market funds increased by $4.60 billion to $2.89 trillion. Among retail funds, government money market fund assets increased by $3.92 billion to $1.82 trillion, prime money market fund assets were unchanged at $944.47 billion, and tax-exempt fund assets increased by $685 million to $126.54 billion." Retail assets account for well over a third of total assets, or 41.2%, and Government Retail assets make up 63.0% of all Retail MMFs. They add, "Assets of institutional money market funds increased by $3.90 billion to $4.12 trillion. Among institutional funds, government money market fund assets increased by $1.96 billion to $3.89 trillion, prime money market fund assets increased by $1.46 billion to $215.97 billion, and tax-exempt fund assets increased by $482 million to $12.67 billion." Institutional assets accounted for 58.8% of all MMF assets, with Government Institutional assets making up 94.5% of all institutional MMF totals. According to Crane Data's separate Money Fund Intelligence Daily series, money fund assets have decreased by $19.3 billion in June (through 6/17/25) to $7.381 trillion, after assets hit a record high of $7.406 trillion on June 3. Assets jumped by $100.9 billion in May, fell by $24.4 billion in April, they rose $2.8 trillion in March, $94.2 billion in February, $52.8 billion in January, $110.9 billion in December, $200.5 trillion in November, $97.5 billion in October, $149.8 billion in September, $109.7 billion in August, $16.6 billion in July, and $15.7 billion last June. Note that ICI's asset totals don't include a number of funds tracked by the SEC and Crane Data, so they're over $330 billion lower than Crane's asset series.
Barron's: Senate Passes Stablecoin Bill
Barron's writes, "Senate Passes Stablecoin Bill as Crypto Eyes a Bigger Prize." They tell us, "The Senate passed a bill Tuesday evening to regulate stablecoins, the lifeblood of the crypto market, awarding the industry a victory it has sought for years. The industry's bigger goals will be harder to achieve, and risk muddying Tuesday's win.... It would establish rules for stablecoins, a type of crypto token that is most often pegged to the dollar and backed by reserves.... The bill will now head to the House of Representatives. Some lawmakers hope to get it to President Donald Trump's desk by the end of July. Among other provisions, the bill -- called the Genius Act -- limits stablecoin reserves to safe, liquid assets, such as Treasuries, clarifies how they're regulated, and creates a path for banks to issue their own coins." It adds, "Right now, stablecoins are primarily used on crypto exchanges to trade for other tokens, such as Bitcoin. But crypto and financial industry executives think that the coins could one day dominate payments, competing with bank and wire transfers and credit cards. Tether Holdings issues the largest stablecoin, USDT, which has a market value of $155 billion. Circle Internet Group, which recently held an initial public offering, issues the second-largest, USDC, with a $61.6 billion value."
Crane 100 Index Remains at 4.10%
Money fund yields (7-day, annualized, simple, net) remained flat at 4.10% on average during the week ended Friday, June 13 (as measured by our Crane 100 Money Fund Index), after decreasing by two basis points the previous week. Fund yields should stay relatively flat until the Fed moves rates again later this year. They've declined by 96 bps since the Fed first cut its Fed funds target rate by 50 bps on Sept. 18, 2024, and they've declined by 53 bps since the Fed last cut rates by 1/4 point on 11/7/24. Yields were 4.10% on 5/31, 4.13% on 4/30/25, 4.14% on 3/31/25, 4.16% on 2/28/25, 4.19% on 1/31/25, 4.28% on average on 12/31/24, 4.45% on 11/30/24, 4.65% on 10/31, 4.75% on 9/30, 5.10% on 8/31, 5.13% on 7/31 and 6/28, 5.14% on 3/31 and 5.20% on 12/31/23. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 682), shows a 7-day yield of 4.00%, down 1 bp in the week through Friday. Prime Inst money fund yields were unchanged at 4.24% in the latest week. Government Inst MFs were down 1 bp at 4.10%. Treasury Inst MFs were unchanged at 4.05%. Treasury Retail MFs currently yield 3.81%, Government Retail MFs yield 3.80%, and Prime Retail MFs yield 3.99%, Tax-exempt MF 7-day yields were up 53 bps to 2.38%. Assets of money market funds fell by $31.0 billion last week to $7.346 trillion, according to Crane Data's Money Fund Intelligence Daily. Two weeks prior MMF assets hit a record high of $7.406 trillion (on June 3) after their previous high of $7.400 trillion set on May 30. For the month of June (MTD), MMF assets have decreased $54.1 billion after increasing by $100.9 billion in May, decreasing $24.4 billion in April, increasing by $2.8 billion in March, $94.2 billion in February, $52.8 billion in January, $110.9 billion in December, $200.5 billion in November, $97.5 billion in October and $149.8 billion in September. Weighted average maturities were at 39 days for the Crane MFA and 39 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (6/13), 116 money funds (out of 794 total) yield under 3.0% with $143.7 billion in assets, or 2.0%; 263 funds yield between 3.00% and 3.99% ($1.557 trillion, or 21.2%), 415 funds yield between 4.0% and 4.99% ($5.646 trillion, or 76.9%) and following the recent rate cut there continue to be zero funds yielding 5.0% or more. Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.40%, after falling 1 bp four weeks prior. The latest Brokerage Sweep Intelligence, with data as of June 13, shows no changes over the past week. Three of the 10 major brokerages tracked by our BSI still offer rates of 0.01% for balances of $100K (and lower tiers). These include: E*Trade, Merrill Lynch and Morgan Stanley.
Barron's on Treasury Bill ETFs
Barron's writes "These Are the Hottest Bond ETFs This Year—and for Good Reason." The article tells us, "Treasury bills have rarely been more attractive, and exchange-traded funds make owning them easier than ever.... Berkshire Hathaway CEO Warren Buffett has long stashed the bulk of the company's ample cash reserves in Treasury bills because they're the safest short-term bond investments. Berkshire now holds over $300 billion of Treasury bills, or about 5% of the entire $6 trillion market. Retail investors are also getting in on the act: Noncompetitive bids at Treasury auctions, a reflection of retail demand, are running at about $15 billion a month." The piece says, "Reflecting the boom in fixed-income exchange-traded funds, Treasury-bill ETFs are rapidly gaining in popularity and challenging money-market funds and bank deposits as a place for retail investors to park cash. T-bill ETFs now hold over $100 billion in assets, but are dwarfed by money-market funds, which have $7 trillion in assets. The two largest are the $48 billion iShares 0-3 Month Treasury Bond ETF, which launched in 2020, and the $44 billion SPDR Bloomberg 1-3 Month T-Bill ETF, which has been around since 2007. Vanguard entered the market in early 2025 with the Vanguard Ultra-Short Treasury ETF, which has an annual fee of just 0.07%, against 0.09% for the iShares ETF and 0.14% for the SPDR ETF. They yield in the 4.2% to 4.3% range. The iShares ETF has attracted $18 billion of inflows so far this year, the most of any bond ETF." Barron's adds, "The T-bill ETFs, however, offer advantages over buying direct, including simplicity, a diversified pool of securities, monthly income, and ready liquidity on the NYSE or Nasdaq. One benefit over money-market funds is taxes. Interest on T-bills is exempt from state and local taxes, a nice plus for investors in states like New York and California where income-tax rates can top 10%. CD interest is subject to state and local taxes, as is much or all income from money funds, including many popular 'government' funds."
ICI's latest weekly "Money Market Fund Assets" shows money fund assets falling $9.3 billion to $7.007 trillion, after jumping $66.8 billion the week prior. Money fund assets remain just below their record level of $7.032 trillion set on April 2. They've increased by $703.0 billion (or 11.2%) since the Fed last cut rates on 9/18/24 and increasing by $1.029 trillion (or 17.2%) since 4/24/24. MMF assets are up by $886 billion, or 14.5%, in the past 52 weeks (through 6/11/25), with Institutional MMFs up $448 billion, or 12.2% and Retail MMFs up $438 billion, or 17.9%. Year-to-date, MMF assets are up by just $156 billion, or 2.3%, with Institutional MMFs up $4 billion, or 0.1% and Retail MMFs up $152 billion, or 5.5%. ICI's weekly release says, "Total money market fund assets decreased by $9.34 billion to $7.01 trillion for the week ended Wednesday, June 11.... Among taxable money market funds, government funds decreased by $7.96 billion and prime funds increased by $975 million. Tax-exempt money market funds decreased by $2.35 billion." ICI's stats show Institutional MMFs decreasing $7.8 billion and Retail MMFs decreasing $1.6 billion in the latest week. Total Government MMF assets, including Treasury funds, were $5.709 trillion (81.5% of all money funds), while Total Prime MMFs were $1.159 trillion (16.5%). Tax Exempt MMFs totaled $138.0 billion (2.0%). It explains, "Assets of retail money market funds decreased by $1.58 billion to $2.89 trillion. Among retail funds, government money market fund assets decreased by $2.37 billion to $1.82 trillion, prime money market fund assets increased by $2.73 billion to $944.48 billion, and tax-exempt fund assets decreased by $1.94 billion to $125.85 billion." Retail assets account for well over a third of total assets, or 41.2%, and Government Retail assets make up 62.9% of all Retail MMFs. They add, "Assets of institutional money market funds decreased by $7.76 billion to $4.12 trillion. Among institutional funds, government money market fund assets decreased by $5.59 billion to $3.89 trillion, prime money market fund assets decreased by $1.76 billion to $214.51 billion, and tax-exempt fund assets decreased by $414 million to $12.19 billion." Institutional assets accounted for 58.8% of all MMF assets, with Government Institutional assets making up 94.5% of all institutional MMF totals. According to Crane Data's separate Money Fund Intelligence Daily series, money fund assets have decreased by $18.2 billion in June (through 6/11/25) to $7.382 trillion, after assets hit a record high of $7.406 trillion on June 3. Assets jumped by $100.9 billion in May, fell by $24.4 billion in April, they rose $2.8 trillion in March, $94.2 billion in February, $52.8 billion in January, $110.9 billion in December, $200.5 trillion in November, $97.5 billion in October, $149.8 billion in September, $109.7 billion in August, $16.6 billion in July, and $15.7 billion last June. Note that ICI's asset totals don't include a number of funds tracked by the SEC and Crane Data, so they're over $330 billion lower than Crane's asset series.
European MF Symposium in Dublin
While we're making final plans for our upcoming Money Fund Symposium, which is scheduled for June 23-25, 2025 at The Renaissance Boston Seaport, in Boston, Mass, we're also making plans for our next European Money Fund Symposium, which is scheduled for Sept. 22-23, 2025, in Dublin, Ireland. (Note: We shifted the dates of this event to Sept. 22-23 to avoid sold-out hotels the weekend of Sept. 26-28 due to the Steelers game in Dublin.) Our 2024 event in London attracted a record 210 attendees, so we expect our 2025 event to once again be the biggest money market event in Europe. The agenda has been posted and registration ($1000 to attend) is now live. European Money Fund Symposium offers "offshore" money fund portfolio managers, and money market investors, issuers, dealers and service providers a concentrated and affordable educational experience, as well as an excellent and informal networking venue. Finally, mark your calendars for our next Money Fund University "basic training" event, scheduled for Dec. 18-19, 2025, in Pittsburgh, Pa. Let us know if you'd like more details on any of our events, and we hope to see you in Newport Beach this month, in Boston in June, in Dublin in September or in Pittsburgh in December!
Reuters on Stablecoins, Treasury Risk
Reuters writes, "Stablecoins' step toward mainstream could shake up parts of US Treasury market." The article says, "As stablecoins take a step toward becoming mainstream, some segments of the U.S. Treasury market, notably securities with short-term maturities, could be vulnerable to volatility as they become more closely tied to the world of cryptocurrency. Congress is poised to pass legislation establishing a regulatory framework for stablecoins, expected to help legitimize the dollar-pegged cryptocurrencies which are commonly used by crypto traders to move funds between tokens. Proponents of the bill argue that clear rules will spur further stablecoin activity, and support a growing sector of buyers of short-term U.S. government debt, or T-bills, that are typically considered cash-equivalent securities. But others worry a larger footprint for a relatively new and more volatile industry could in turn spur volatility in the bills market." They quote Cristiano Ventricelli, vice president and senior analyst of digital assets at Moody's Ratings, "In the event of a sudden loss of confidence, regulatory pressure, or market rumors, this could trigger large-scale liquidations, potentially depressing Treasury prices and disrupting fixed-income markets." The piece tells us, "If signed into law, the stablecoin bill would require tokens to be backed by liquid assets -- like U.S. dollars and short-term Treasury bills -- and monthly disclosures from issuers on the composition of their reserves. That means if stablecoins are expected to grow, issuers will have to purchase more T-bills to back their assets. The bill could be passed by the Senate as early as [this] week and could eventually increase the amount of U.S. Treasuries held by stablecoin issuers such as Tether and Circle, the latter of which debuted on the NYSE [last] Thursday. They together hold $166 billion in U.S. Treasuries, according to a report by Bain & Company's financial services practice." Reuters adds, "The stablecoin market, currently about $247 billion according to crypto data provider CoinGecko, could grow to $2 trillion by 2028 if legislation were to pass, Standard Chartered estimated.... Currently, there are about $29 trillion in Treasury securities outstanding, of which $6 trillion are bills.... In an April research note, JP Morgan analysts estimated that stablecoin issuers could become the third-largest buyer of Treasury bills in the coming years. That raises red flags for some, who worry that would lead to closer ties between the crypto ecosystem and the traditional financial world. The Treasury Borrowing Advisory Committee, a group of banks and investors that advise the government on its funding, said in a study in April that growth of the stablecoin market at the expense of bank deposits could reduce banks' demand for U.S. Treasuries, as well as have an impact on credit growth." Finally, they write, "Money market funds, which invest in short-term debt, could be impacted. Money market expert Pete Crane, president of Crane Data, said money funds are watching stablecoin closely but the size of the market would have to become significantly bigger to create concerns over financial stability. 'Treasury bills are normally so short (in maturity) that people don't concern themselves with price movements, but of course in case of a rapid liquidation the price is going to go down,' he said. Issues with stablecoins have not so far been large enough to cause systemic problems but the calculus could shift if federal legislation were to spur widespread adoption. In 2022, a meltdown in the crypto markets sent Tether's stablecoin below its dollar peg, which caused no impact on the Treasury market. At the time, then-U.S. Treasury Secretary Janet Yellen said stablecoins like Tether didn't pose a systemic risk to the financial system because they were too small in scale. In 2023, Circle's USD Coin also lost its dollar peg after the company revealed it held a portion of its reserves at failed Silicon Valley Bank. Circle and Tether declined comment. Still, some argue that there could be benefits from increasing demand for government debt."
Crane 100 Index Back Down to 4.10%
Money fund yields (7-day, annualized, simple, net) decreased by two basis points to 4.10% on average during the week ended Friday, June 6 (as measured by our Crane 100 Money Fund Index), after increasing by two basis points the previous week. Fund yields should stay relatively flat until the Fed moves rates again later this year. They've declined by 96 bps since the Fed first cut its Fed funds target rate by 50 bps on Sept. 18, 2024, and they've declined by 53 bps since the Fed last cut rates by 1/4 point on 11/7/24. Yields were 4.10% on 5/31, 4.13% on 4/30/25, 4.14% on 3/31/25, 4.16% on 2/28/25, 4.19% on 1/31/25, 4.28% on average on 12/31/24, 4.45% on 11/30/24, 4.65% on 10/31, 4.75% on 9/30, 5.10% on 8/31, 5.13% on 7/31 and 6/28, 5.14% on 3/31 and 5.20% on 12/31/23. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 682), shows a 7-day yield of 4.01%, down 1 bp in the week through Friday. Prime Inst money fund yields were down 1 bp at 4.24% in the latest week. Government Inst MFs were down 1 bp at 4.11%. Treasury Inst MFs were down 2 bps at 4.05%. Treasury Retail MFs currently yield 3.82%, Government Retail MFs yield 3.81%, and Prime Retail MFs yield 4.01%, Tax-exempt MF 7-day yields were down 28 bps to 1.85%. Assets of money market funds fell by $23.1 billion last week to $7.377 trillion, according to Crane Data's Money Fund Intelligence Daily. Last week MMF assets hit a record high of $7.406 trillion (on June 3) after their previous high of $7.400 trillion set on May 30. For the month of June (MTD), MMF assets have decreased $23.1 billion after increasing by $100.9 billion in May, decreasing $24.4 billion in April, increasing by $2.8 billion in March, $94.2 billion in February, $52.8 billion in January, $110.9 billion in December, $200.5 billion in November, $97.5 billion in October and $149.8 billion in September. Weighted average maturities were at 38 days for the Crane MFA and 38 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (6/6), 116 money funds (out of 794 total) yield under 3.0% with $146.7 billion in assets, or 2.0%; 258 funds yield between 3.00% and 3.99% ($1.312 trillion, or 17.8%), 420 funds yield between 4.0% and 4.99% ($5.918 trillion, or 80.2%) and following the recent rate cut there continue to be zero funds yielding 5.0% or more. Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.40%, after falling 1 bp three weeks prior. The latest Brokerage Sweep Intelligence, with data as of June 6, shows no changes over the past week. Three of the 10 major brokerages tracked by our BSI still offer rates of 0.01% for balances of $100K (and lower tiers). These include: E*Trade, Merrill Lynch and Morgan Stanley.
State Street on SEC Central Clearing
State Street published, "Answers to your FAQs on the SEC Central Clearing Mandate," which says, "We've provided a central repository of answers to your most frequently asked questions about the SEC Central Clearing Mandate for US Treasuries." The update tells us, "The SEC's central clearing mandate will require a significantly larger portion of US Treasury securities transactions to be cleared through a central counterparty (CCP), for which at this time Fixed Income Clearing Corporation (FICC) is the only qualifying servicer. This applies to both cash trades and repurchase agreements (repos)1 involving US Treasuries. Central clearing reduces counterparty risk by making the CCP the counterparty to all trades, ensuring that if one party to the initial trade defaults, the CCP mitigates the impact on the broader market." Compliance deadlines were recently shifted back to Dec. 31, 2026 from Dec. 31, 2025. State Street explains, "The mandate applies to direct participants of FICC, such as major banks and broker dealers, which generally have to shift their dealer-to-dealer cash activity and both dealer-to-dealer and dealer-to-client repo activity into clearing. The 'clients' here, (traditional buyside firms, including asset managers, hedge funds and pension funds), will also be impacted by this mandate. While buyside firms are not required to be direct participants of FICC and largely out of scope for cash trade activities, they will likely need to clear their repo trades through indirect access models." The piece adds, "The SEC rule became final in late 2023 and compliance dates were initially set in 2025 for cash transactions, and 2026 for repo transactions; however, these compliance dates have been delayed to 2026 and 2027, respectively."
ICI: MMF Assets Retake $7.0 Trillion
ICI's latest weekly "Money Market Fund Assets" shows money fund assets jumping $66.8 billion to $7.016 trillion, after falling $19.8 billion the week prior. Money fund assets remain just below their record level of $7.032 trillion set on April 2. They've increased by $712.3 billion (or 11.3%) since the Fed last cut rates on 9/18/24 and increasing by $1.038 trillion (or 17.4%) since 4/24/24. MMF assets are up by $923 billion, or 15.2%, in the past 52 weeks (through 6/4/25), with Institutional MMFs up $483 billion, or 13.2% and Retail MMFs up $441 billion, or 18.0%. Year-to-date, MMF assets are up by just $165 billion, or 2.4%, with Institutional MMFs up $12 billion, or 0.3% and Retail MMFs up $153 billion, or 5.6%. ICI's weekly release says, "Total money market fund assets increased by $66.78 billion to $7.02 trillion for the week ended Wednesday, June 4.... Among taxable money market funds, government funds increased by $56.87 billion and prime funds increased by $10.97 billion. Tax-exempt money market funds decreased by $1.06 billion." ICI's stats show Institutional MMFs increasing $48.7 billion and Retail MMFs increasing $18.1 billion in the latest week. Total Government MMF assets, including Treasury funds, were $5.717 trillion (81.5% of all money funds), while Total Prime MMFs were $1.158 trillion (16.5%). Tax Exempt MMFs totaled $140.4 billion (2.0%). It explains, "Assets of retail money market funds increased by $18.12 billion to $2.89 trillion. Among retail funds, government money market fund assets increased by $11.47 billion to $1.82 trillion, prime money market fund assets increased by $7.83 billion to $941.75 billion, and tax-exempt fund assets decreased by $1.17 billion to $127.79 billion." Retail assets account for well over a third of total assets, or 41.2%, and Government Retail assets make up 63.0% of all Retail MMFs. They add, "Assets of institutional money market funds increased by $48.66 billion to $4.13 trillion. Among institutional funds, government money market fund assets increased by $45.40 billion to $3.90 trillion, prime money market fund assets increased by $3.15 billion to $216.26 billion, and tax-exempt fund assets increased by $111 million to $12.60 billion." Institutional assets accounted for 58.8% of all MMF assets, with Government Institutional assets making up 94.5% of all institutional MMF totals. According to Crane Data's separate Money Fund Intelligence Daily series, money fund assets have decreased by $3.1 billion in June (through 6/4/25) to $7.397 trillion, after assets hit a record high of $7.406 trillion on June 3. Assets jumped by $100.9 billion in May, fell by $24.4 billion in April, they rose $2.8 trillion in March, $94.2 billion in February, $52.8 billion in January, $110.9 billion in December, $200.5 trillion in November, $97.5 billion in October, $149.8 billion in September, $109.7 billion in August, $16.6 billion in July, $15.7 billion in June and $91.4 billion in May 2024. Note that ICI's asset totals don't include a number of funds tracked by the SEC and Crane Data, so they're over $330 billion lower than Crane's asset series.
Interactive Brokers Ups FDIC Insurance
A news brief titled, "Interactive Brokers offers additional security for uninvested cash held in brokerage accounts" tells us, "Interactive Brokers LLC offer IBKR Pro clients with individual accounts and/or IRAs and organizational accounts a program that gives them additional security on the cash held in their brokerage accounts. As of May 27, 2025, the Insured Bank Deposit Sweep Program provides up to USD 5.0 million of Federal Deposit Insurance Corporation (FDIC) coverage on an individual or institutional account's free cash balances. In addition, joint accounts are eligible for up to USD 10.0 million in coverage on free cash balances." They explain, "Combined with the existing Securities Investor Protection Corporation (SIPC) coverage of the first USD 250,000 in your brokerage account, the total available insurance for your IBKR brokerage and sweep accounts is USD 5.25 million for individual accounts and USD 10.25 million for joint accounts. Cash balances above these limits remain subject to safeguarding under the SEC's Customer Protection Rule 15c3-3, backed by the firm's equity capital. Adding this program will not disrupt your account features or your trading capabilities. You will continue to earn competitive interest on balances, and your account cash will remain available for stocks, options, futures, currencies and bond trading on more than 160 markets globally."
JPM Wealth on Where to Invest Cash
J.P. Morgan Wealth Management writes on "Where to invest cash to boost its yield." They tell us, "The phrase 'cash is king' has some merit, and having a healthy balance in your checking or savings account and maintaining an emergency fund is sound financial advice. That said, building long-term wealth may depend on utilizing a range of investment options with more potential to grow than relying solely on money kept in a traditional savings account. If you have excess cash in a checking or savings account, you may find yourself wondering how to invest the cash in a relatively risk averse way that would keep it relatively liquid while potentially growing your money faster than you could with a traditional savings account." JPM says, "There are a number of financial products that might pay attractive rates on your cash with little risk. Once you know the characteristics of these different options, it will be easier to make an informed choice about the most advantageous way for you to invest your excess cash in order to best meet your needs. Of note, the options this article covers are lower risk investment options that are relatively liquid. There are other investment options for cash -- like stocks -- but these options often come with more risk. If you have a longer time horizon or the ability or want to take on more risk, you may desire to consider some of the other investment options out there beyond what’s covered below. If you need guidance on where to invest your cash, consider reaching out to a J.P. Morgan advisor to create a personalized strategy today." The piece mentions: High-yield savings account, Bank CDs, Brokered CDs, Treasuries, Money market funds and Short-term bond funds. It adds, "While cash may not offer the highest growth potential for long-term wealth accumulation, it can serve as a stable foundation in your investment portfolio. To enhance the returns on the excess cash you hold, consider exploring higher-yield options such as money market funds or CDs, or seek out other products that align with your risk tolerance and investment timeline."
OFR: Hedge Funds and Repo Reversal
The U.S. Treasury's Office of Financial Research (OFR) published a brief, "OFR Hedge Fund Monitor Shows Repo Reversal," which tells us, "The OFR's Hedge Fund Monitor (HFM) was updated in late April to reflect Q4 2024 Securities and Exchange Commission (SEC) Form PF data for Qualifying Hedge Funds. Hedge fund Q4 repurchase agreement (repo) borrowing declined 9% quarter-over-quarter to $2.5 trillion following eight consecutive quarters of growth. Repo borrowing is a key source of leverage for hedge funds. In these secured borrowing transactions, hedge funds borrow cash by posting securities, such as U.S. Treasury and foreign sovereign debt, as collateral. If a hedge fund defaults on its repayment obligation, the lender can sell the collateral to repay its loan. By creating a secure and flexible market for temporarily monetizing government debt, repo markets improve the efficiency of financial markets more broadly." The update explains, "Notably, the Q4 decline followed a record high for hedge fund repo borrowing in Q3 and exceeded prime brokerage borrowing.... The last time repo borrowing exceeded prime brokerage borrowing by a wider margin was Q1 2020, a period of extreme market volatility. From Q4 2022 through Q4 2024, repo borrowing more than doubled (up 104%), which facilitated additional leverage for multi-strategy, macro, and relative value funds." It adds, "Hedge fund repo borrowing increased so significantly during the past two years because hedge fund investments in Treasury and foreign sovereign debt increased. This growth is primarily due to cash-futures basis, cash-swap basis, and yield curve trades, which all involve repo financing. Growth in these trades is a function of many underlying developments, including increased issuance in Treasury and foreign sovereign debt markets. As these markets have grown, so too have hedge fund positions. Historically, repo borrowing has declined in Q4 in nine of the last 12 years. However, the recent decline is notable as it was broad-based with 19 of the top 20 largest repo borrowers reducing borrowing."
MillTech Partners with Cachematrix
TMI posted the story, "MillTech Launches Cash Management Solution, Partnering With BlackRock." It says, "FX hedging specialist, MillTech, has launched a new cash management solution, in partnership with BlackRock's CacheMatrix, to help investment managers and global corporates optimise their excess cash.... Its solution automates cash investments and enhances returns through direct access to an integrated marketplace of tier-1 money market funds." The update tells us, "Enhancing multi-currency cash returns is a complex task. Fragmented systems, manual processes and limited automation make it difficult for treasury teams to track and manage global cash effectively. Maintaining multiple money market fund relationships adds to the operational burden, often resulting in underperforming idle cash sitting in a bank account. MillTech's new cash management solution enables clients to access the best available returns from multiple money market fund providers, while automating the trade lifecycle and providing complete cost transparency. The platform delivers streamlined onboarding and end-to-end automation, simplifying the investment process. Through a rules-based approach, MillTech enhances control and compliance, giving treasury teams added confidence in their cash allocation decisions." TMI adds, "The firm's expansion into cash management is being led by two recent hires, Matthew Shapcott and Neil Gallacher. Prior to MillTech, Shapcott served as EMEA Head of GlobalLink Business Development at State Street and brings two decades of experience in the industry. Gallacher was formerly Senior Business Development Director and head of APAC for GlobalLink Fixed Income at State Street and brings nearly 15 years of deep expertise in money markets."
