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Bloomberg BusinessWeek writes "​Money Market Investors May Get Relief From Fed'​s Operation Twist". It says, "Investors in U.​S. money market funds may get some relief from record-​low returns when the Federal Reserve begins to sell short-​term debt as part of its latest stimulus effort that'​s been dubbed Operation Twist. The rate to borrow and lend Treasuries for one day in the repurchase agreement market may rise six to eight basis points, according to Barclays Plc. Overnight general collateral repo agreements for Treasuries averaged 0.​069 percent since June, while one-​month Treasury bill rates averaged 0.​0113 percent. The one-​month bill has traded below zero almost every day since mid-​August. The Fed'​s plan to begin selling $​400 billion of Treasuries due in three years and less next month to fund purchases of a similar amount of longer-​maturity debt comes as investors park cash in money funds. Investors have been seeking a refuge from Europe'​s debt crisis and slowing growth. Custody banks have also been hurt by persistent low interest rates, which reduce income from lending cash and securities and cut fees from the funds. Bank of New York Mellon Corp., the world'​s largest custody bank, said last month it will begin charging customers for '​extraordinarily high' cash deposits." The piece adds, "Demand for short-​term government debt instruments has risen this year as the supply of Treasury bills fell due to reduced government sales, causing money market rates to trade below zero. The Fed has kept its benchmark rate for overnight loans at near zero percent since 2008 and purchased assets to lower long- term rates. During the six-​week period ended Sept. 20, money-​market mutual funds took in $​66 billion, according to research firm Crane Data LLC, based in Westborough, Massachusetts. Total assets in the funds rose to $​2.​59 trillion, including $​2.​3 trillion in taxable and $​1.​46 trillion in prime funds."

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The Preliminary Agenda for the 2nd annual Crane'​s Money Fund University was posted on the conference website (​www.​moneyfunduniversity.​com) earlier this week. Crane'​s Money Fund University, an affordable and comprehensive two day, "​basic training" course on money market mutual funds, will he held January 19-​20, 2012, at The Hyatt Regency Boston. Last year'​s inaugural University attracted over 100 speakers, sponsors and attendees, and we expect even a stronger showing this coming year. MFU covers the history of money funds, interest rates, Rule 2a-​7, ratings, rankings, money market instruments such as commercial paper and repo, and portfolio construction and credit analysis. (Click here for the full agenda.) New portfolio managers, analysts, investors, issuers, service providers, and anyone interested in expanding their knowledge of "​cash" investing should benefit from our comprehensive program. Even experienced professionals should enjoy a refresher course and the opportunity to interact with peers in an informal setting. Attendee registration for Crane'​s Money Fund University is $​500. Exhibit space is $​2,​000 and sponsorship opportunities are $​3K, $​4.​5K, and $​5K. E-​mail Pete to request the latest conference brochure. The 4th annual Crane'​s Money Fund Symposium, our larger flagship money market mutual fund event, is scheduled for June 20-​22, 2012, in Pittsburgh, Pa. (​Look for more details in coming weeks on www.​moneyfundsymposium.​com.)

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