Link of The Day
Weekly Money Fund Portfolio Holdings
Crane Data published its latest Weekly Money Fund Portfolio Holdings statistics Tuesday, which track a shifting subset of our monthly Portfolio Holdings collection. The most recent cut (with data as of January 30) includes Holdings information from 32 money funds (down 34 from a week ago), or $2.007 trillion (down from $3.705 trillion) of the $8.142 trillion in total money fund assets (or 24.6%) tracked by Crane Data. (Note: Our Weekly MFPH are e-mail only and aren't available on the website. See our latest Monthly Money Fund Portfolio Holdings here and our January 13 News, "Jan. Money Fund Portfolio Holdings: Assets Jump; FICC, Fed Repo Surge.") Our latest Weekly MFPH Composition summary shows Government assets dominating the holdings list with Treasuries totaling $908.8 billion (down from $1.657 trillion a week ago), or 45.3%; Repurchase Agreements (Repo) totaling $779.8 billion (down from $1.423 trillion a week ago), or 38.9%, and Government Agency securities totaling $222.5 billion (down from $356.7 billion a week ago), or 11.1%. Commercial Paper (CP) totaled $44.8 billion (down from $113.6 billion a week ago), or 2.2%. Certificates of Deposit (CDs) totaled $21.8 billion (down from $70.9 billion a week ago), or 1.1%. The Other category accounted for $11.7 billion or 0.6%, while VRDNs accounted for $17.4 billion or 0.9%. The Ten Largest Issuers in our Weekly Holdings product include: the US Treasury with $908.8 billion, Fixed Income Clearing Corp with $296.3B, the Federal Home Loan Bank with $136.2B, JP Morgan with $88.5B, Federal Farm Credit Bank with $58.7B, Fidelity with $42.0B, RBC with $39.5B, BNP Paribas with $38.9B, Wells Fargo with $29.1B and Citi with $26.6B. The Ten Largest Funds tracked in our latest Weekly include: Fidelity Inv MM: Govt Port ($266.7B), State Street Inst US Govt ($211.3B), Morgan Stanley Inst Liq Govt ($204.1B), Fidelity Inv MM: MM Port ($170.7B), Dreyfus Govt Cash Mgmt ($159.2B), Allspring Govt MM ($135.9B), First American Govt Oblg ($123.3B), Fidelity Inv MM: Treas Only ($122.4B), Fidelity Inv MM: Treas Port ($77.3B) and Dreyfus Treas Sec Cash Mg ($71.0B). (Let us know if you'd like to see our latest domestic U.S. and/or "offshore" Weekly Portfolio Holdings collection and summary.)
Money Fund Yields Flat at 3.50%
Money fund yields (7-day, annualized, simple, net) were unchanged at 3.50% on average during the week ended Friday, January 30 (as measured by our Crane 100 Money Fund Index), after decreasing 1 bp the week prior. Fund yields haven't been below 3.5% since November 2022, and they are down from a recent high of 5.20% in November 2023. They should remain flat in coming days (and weeks) since the Fed left short-term rates unchanged last week. Yields were 3.58% on 12/31/25, 3.78% on 11/30, 3.90% on 10/31, 3.94% on 9/30, 4.11% on 8/31, 4.12% on 7/31, 4.13% on 6/30, 4.14% on 3/31/25 and 4.28% on average on 12/31/24. MMFs averaged 4.75% on 9/30/24, 5.10% on 6/28/24, 5.14% on 3/31/24 and 5.20% on 12/31/23. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 681), shows a 7-day yield of 3.40%, unchanged in the week through Friday. Prime Inst money fund yields were unchanged at 3.62% in the latest week. Government Inst MFs were unchanged at 3.51%. Treasury Inst MFs were down 1 bp at 3.45%. Treasury Retail MFs currently yield 3.22%, Government Retail MFs yield 3.20% and Prime Retail MFs yield 3.42%, Tax-exempt MF 7-day yields were up 64 bps to 1.74%. Money market mutual fund assets have fallen since hitting a record high of $8.165 trillion on January 6, according to our Money Fund Intelligence Daily. Assets have risen $49.8 billion in the week through Friday, but they've increased by $32.9 billion in January month-to-date (through 1/30). MMF assets increased by $126.3 billion in December, $132.8 billion in November, $142.1 billion in October, $105.2 billion in September and $132.0 billion in August. They rose by $63.7 billion in July, $6.7 billion in June and $100.9 billion in May. But MMFs decreased $24.4 billion in April. Assets increased by $2.8 billion in March, $94.2 billion in February, and $52.8 billion last January. Weighted average maturities were at 40 days for the Crane MFA and 42 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (1/30), just 163 money funds (out of 791 total) yield under 3.0% with $190.0 billion in assets, or 2.3%, while the vast majority (628) of funds yield between 3.00% and 3.99% ($7.952 trillion, or 97.7%). No funds yield over 4.0%. Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.30%, after falling 1 basis point six weeks prior. The latest Brokerage Sweep Intelligence, with data as of January 30, shows no changes over the past week. Four of the 10 major brokerages tracked by our BSI offer rates of 0.01% for balances of $100K (and lower tiers). These include: E*Trade, Merrill Lynch, Morgan Stanley and Schwab.
Penn Mutual AM Says Cash Still King
Penn Mutual Asset Management posted an insight titled, "Cash is Still King: Money Market Funds Hold Firm Near All-Time Highs." It states, "U.S. money market funds have experienced substantial growth in assets under management over recent decades, driven by shifting interest rate environments, economic disruptions, regulatory reforms and sustained investor demand for safe, liquid cash alternatives. Total balances remain exceptionally elevated—recently reaching approximately $7.8 trillion -- despite the Federal Reserve's (Fed) most recent easing cycle in late 2025." The blog continues, "Since its peak above 5%, the Fed has reduced the target federal funds rate to a range of 3.50%-3.75%, a move that directly lowers yields on money market funds. At first glance, this persistence of elevated cash balances may seem counterintuitive, as declining rates have historically encouraged investors to rotate out of cash and into higher-returning assets such as equities or longer-duration fixed income. However, current conditions help explain why money market funds continue to attract significant capital." Penn Mutual states, "Even with rates trending downward, money market funds continue to offer attractive yields relative to traditional bank deposits, often outpacing insured savings accounts by a meaningful margin. On a historical basis, yields remain appealing, and both institutional and retail investors maintain money market allocations to meet liquidity needs, satisfy short-term operating requirements or utilize as a temporary parking place for capital. Because these funds invest primarily in short-dated instruments such as Treasury bills, agency discount notes and high-quality commercial paper, their yields reset gradually, providing a smoother descent compared to more volatile market instruments." They continue, "As a result, the combination of still-competitive yields in money markets, principal stability, daily liquidity and limited confidence in the broader economic outlook has kept balances near record highs rather than prompting a meaningful rotation into risk assets. An elevated money market fund balance may reflect continued investor caution amid slowing growth, uncertain inflation dynamics and relatively full valuations across other asset classes.... Until ... alternative asset classes offer meaningfully better risk-adjusted returns, or the economic outlook becomes clearer, money market funds are likely to remain a central destination for investor capital."
Raymond James Q4'25 Earnings
Raymond James Financial (RJF) reported Q4'25 earnings earlier this week, and the company briefly mentioned brokerage sweep accounts and money markets a few times on its latest earnings call. CFO Butch Oorlog, comments, "Clients' domestic cash sweep and enhanced savings program balances ended the quarter at $58.1 billion, up 3% over the preceding quarter and representing 3.7% of domestic PCG client assets. Based on January activity to date, domestic cash sweep and enhanced savings program balances have declined as a result of the collection of record quarterly fee billings of $1.8 billion, and with further declines due to client reinvestment activity.... Combined net interest income and RJBDP fees from third-party banks grew 2% over the prior quarter to $667 million. Net interest margin in the bank segment increased 10 basis points to 2.81% for the quarter, driven by the factors I previously mentioned." CEO Paul Shoukry, says in respond to a question, "In terms of where we stand currently in January, our total combined program sweep and ESP balances are down $2.6 billion, which includes the $1.8 billion fee billing which have already come out of the account, as we indicated. And what we're seeing for that difference is strong client reinvestment of their balances for the rest of it. The breakdown between sweep program and ESP balances of that $2.6 is we've seen $2.1 billion of that in the sweep program and about $500 million of that in the ESP program since the quarter end balance." He adds, "`So, yeah, we're continuing to see, like others that have reported, a shift of the mix, of bigger percentage declines in the enhanced savings program balances. As rates come down, ... those high-yield savings rates are less appealing, especially relative to, the market. So we're seeing more investment in the market versus higher yielding alternatives, at least over the last couple of quarters, as rates started really coming down, which lowers the weighted average mix or the weighted average cost of deposit between sweeps and enhanced savings programs.... That's the flip side of the lower rates, that the floating rate loans become more attractive, and you saw that this past quarter as well. We'll fund it with the diversified funding sources that we have, both the sweep cash, we have third-party cash, that we could redeploy, but also we have diversified deposit gathering apparatus, particularly at Tri-State Capital Bank. And so we'll look at all of those levers to fund future growth going forward."
Fed Says Rates Unchanged at 3.5-3.75%
The release, "Federal Reserve Issues FOMC Statement," tells us, "Available indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained low, and the unemployment rate has shown some signs of stabilization. Inflation remains somewhat elevated. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate." It continues, "In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 3‑1/2 to 3‑3/4 percent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective." The FOMC adds, "In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments. Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Lisa D. Cook; Beth M. Hammack; Philip N. Jefferson; Neel Kashkari; Lorie K. Logan; and Anna Paulson. Voting against this action were Stephen I. Miran and Christopher J. Waller, who preferred to lower the target range for the federal funds rate by 1/4 percentage point at this meeting."
Weekly Money Fund Portfolio Holdings
Crane Data published its latest Weekly Money Fund Portfolio Holdings statistics Tuesday, which track a shifting subset of our monthly Portfolio Holdings collection. The most recent cut (with data as of January 23) includes Holdings information from 66 money funds (up 4 from a week ago), or $3.705 trillion (down from $4.160 trillion) of the $8.092 trillion in total money fund assets (or 45.8%) tracked by Crane Data. (Note: Our Weekly MFPH are e-mail only and aren't available on the website. See our latest Monthly Money Fund Portfolio Holdings here and our January 13 News, "Jan. Money Fund Portfolio Holdings: Assets Jump; FICC, Fed Repo Surge.") Our latest Weekly MFPH Composition summary shows Government assets dominating the holdings list with Treasuries totaling $1.657 trillion (down from $1.984 trillion a week ago), or 44.7%; Repurchase Agreements (Repo) totaling $1.423 trillion (down from $1.459 trillion a week ago), or 38.4%, and Government Agency securities totaling $356.7 billion (down from $379.6 billion a week ago), or 9.6%. Commercial Paper (CP) totaled $113.6 billion (down from $148.5 billion a week ago), or 3.1%. Certificates of Deposit (CDs) totaled $70.9 billion (down from $79.2 billion a week ago), or 1.9%. The Other category accounted for $40.7 billion or 1.1%, while VRDNs accounted for $43.1 billion or 1.2%. The Ten Largest Issuers in our Weekly Holdings product include: the US Treasury with $1.657 trillion, Fixed Income Clearing Corp with $509.8B, the Federal Home Loan Bank with $196.9B, JP Morgan with $143.5B, Federal Farm Credit Bank with $101.5B, RBC with $96.7B, BNP Paribas with $87.9B, Citi with $78.5B, Wells Fargo with $60.9B and Fidelity with $59.6B. The Ten Largest Funds tracked in our latest Weekly include: Goldman Sachs FS Govt ($274.1B), Fidelity Inv MM: Govt Port ($266.7B), State Street Inst US Govt ($211.3B), Morgan Stanley Inst Liq Govt ($203.0B), BlackRock Lq FedFund ($195.3B), Federated Hermes Govt ObI ($183.5B), BlackRock Lq Treas Tr ($173.8B), Fidelity Inv MM: MM Port ($168.6B), Dreyfus Govt Cash Mgmt ($163.0B) and Allspring Govt MM ($132.1B). (Let us know if you'd like to see our latest domestic U.S. and/or "offshore" Weekly Portfolio Holdings collection and summary.)
Bond Fund Symposium Boston, 3/19-20
Crane Data is ramping up preparations for its ninth annual Bond Fund Symposium, a conference focused on ultra-short bond funds and ETFs, which will take place March 19-20, 2026 at the Hyatt Regency in Boston, Mass. Crane's Bond Fund Symposium offers a concentrated and affordable educational experience, as well as an excellent networking venue, for bond fund and fixed-income professionals. Registrations are being accepted ($1,000) and sponsorship opportunities are still available. (We'll "match" and do 2-for-1 tickets if you ask!) See the latest agenda here and details below. (We'll also be hosting Crane Data's 20th Birthday Party alongside BFS, so please join us Thursday, March 19 from 5:00-7:00pm at the Hyatt Regency in Boston.) Portfolio managers, analysts, investors, issuers, service providers, and anyone interested in expanding their knowledge of bond funds and fixed-income investing will benefit from our comprehensive program. A block of rooms has been reserved at the Hyatt Regency Boston. We'd like to thank our sponsors and exhibitors -- Northern Trust Asset Management, UBS Asset Management, Capitolis, Mayer Brown, Northcross, Fitch Ratings, Fidelity Investments, J.P. Morgan, Bloomberg Intelligence, Dreyfus, Payden & Rygel, PIMCO and Dechert -- for their support. (We'd also love to get some new ones!) E-mail us for more details. We're also making plans for our "big show," Money Fund Symposium, which will be held June 24-26, 2026, at The Hyatt Regency Jersey City in Jersey City, N.J.. Finally, mark your calendars for this year's European Money Fund Symposium, which will be held Sept. 24-25 in Paris, France, and for our next Money Fund University, which will be held Dec. 17-18 in Greenwich, Conn. Watch for details on these shows in coming weeks and months.
FT: Building Societies vs. MMFs in UK
The Financial Times writes, "Investment platforms and building societies clash over new Isa rules." Subtitled, "Dispute over whether 'cash-like' money market funds should be allowed in stocks-and-shares Isas," the article tells us, "Investment sites and building societies are clashing over whether money market funds should be allowed to be held within stocks-and-shares individual savings accounts (Isas) when new rules come into force next year. The government overhauled the UK's Isa regime in the Budget in November by reducing the annual amount that can be put into cash Isas to £12,000, from £20,000, for savers under 65 from April 2027." It says, "To stop individuals avoiding the new limit by holding cash in stocks-and-shares Isas, HMRC will introduce certain rules. These will include a test to see if an investment is too 'cash-like' to be eligible for a stocks-and-shares Isa. But the two arms of the financial services industry are at loggerheads over whether money market funds, which invest in short-term bonds and serve as an alternative to cash but with slightly higher returns, should be eligible." The FT piece adds, "At a recent meeting with the Treasury, investment sites argued money market funds should be permitted, since they provide many savers with their first experience of investing, according to three people with knowledge of the meeting. However, representatives of building societies supported the exclusion of money market funds, as these attract money that might otherwise be held in the cash deposits used by lenders to fund mortgages. The debate is heating up as the government consults with the industry on draft legislation, due to be laid before Parliament before April 2027."
Northern Trust Q4'25 Earnings Call
Northern Trust (NTRS) reported Fourth Quarter Earnings yesterday and briefly mentioned money markets, liquidity and deposits. (See the Q4'25 Call transcription here.) CEO Michael O'Grady comments, "NTAM delivered another solid year and is well-positioned to continue executing on its growth initiatives. Liquidity was particularly strong, with the fourth quarter marking the twelfth consecutive quarter of positive flows, and liquidity AUM reaching nearly $340 billion. We continue to broaden our successful liquidity franchise by leveraging digital capabilities, including introducing a tokenized share class of one of our money market funds." CFO David Fox tells us, "Within the deposit base, interest-bearing deposits increased 2% sequentially and noninterest-bearing deposits increased by 10%, climbing to 15% of the overall mix. Net interest income on an FTE basis was $654 million, up 10% sequentially and up 14% compared to the prior year. Sequentially, NII was favorably impacted by higher deposit levels, a greater proportion of noninterest-bearing deposits, and the ongoing impact from deposit pricing actions we've taken outside of rate cuts. Our net interest margin increased sequentially to 1.81%, reflecting the favorable deposit pricing actions taken coupled with a more favorable deposit mix shift." He says, "I would say generally speaking, fourth quarter growth in NIB [non-interest bearing deposits] particularly, I think had a lot of definitely seasonal, but also keep in mind that the government was closed for forty-three days during the quarter. And I do think there was some cash stockpiling during that period because of the lack of economic data. So I think it may have been a little inflated because of that. And going forward, into Q1, you should expect the seasonality of that to fall. Too soon to say when and how." Responding to a question, Fox adds, "Usually, it happens sort of after audit season when they when the funded admin companies decide that they've spent all their money for the that particular quarter. So it will normalize at some point during Q1. I would just say that Q4 is definitely not a jumping-off point. For NII going forward into Q1. It will Q1 will definitely be lower in terms of total NII. In terms of the deposit pricing, know, we continue to spend a lot of time through our liquidity solutions efforts to look at our deposit pricing. We still have a lot of tools in our tool shed to continue to lower that going forward. We also had in the quarter, though, some expensive wholesale funding that rolled off, and we need to replace it. And so because of that more stability there, we're able to bring down our deposit cost accordingly."
Weekly Money Fund Portfolio Holdings
Crane Data published its latest Weekly Money Fund Portfolio Holdings statistics Wednesday, which track a shifting subset of our monthly Portfolio Holdings collection. The most recent cut (with data as of January 16) includes Holdings information from 62 money funds (unchanged from 2 weeks ago), or $4.160 trillion (up from $4.154 trillion) of the $8.084 trillion in total money fund assets (or 51.5%) tracked by Crane Data. (Note: Our Weekly MFPH are e-mail only and aren't available on the website. See our latest Monthly Money Fund Portfolio Holdings here and our January 13 News, "Jan. Money Fund Portfolio Holdings: Assets Jump; FICC, Fed Repo Surge.") Our latest Weekly MFPH Composition summary shows Government assets dominating the holdings list with Treasuries totaling $1.984 trillion (down from $2.035 trillion two weeks ago), or 47.7%; Repurchase Agreements (Repo) totaling $1.459 trillion (up from $1.450 trillion two weeks ago), or 35.1%, and Government Agency securities totaling $379.6 billion (up from $368.0 billion two weeks ago), or 9.1%. Commercial Paper (CP) totaled $148.5 billion (up from $146.0 billion two weeks ago), or 3.6%. Certificates of Deposit (CDs) totaled $79.2 billion (up from $78.3 billion two weeks ago), or 1.9%. The Other category accounted for $69.2 billion or 1.7%, while VRDNs accounted for $40.0 billion or 1.0%. The Ten Largest Issuers in our Weekly Holdings product include: the US Treasury with $1.984 trillion, Fixed Income Clearing Corp with $539.2B, the Federal Home Loan Bank with $214.9B, JP Morgan with $131.2B, RBC with $104.6B, Federal Farm Credit Bank with $94.1B, BNP Paribas with $93.5B, Citi with $93.3B, Wells Fargo with $78.1B and Bank of America with $54.5B. The Ten Largest Funds tracked in our latest Weekly include: JPMorgan US Govt MM ($339.0B), JPMorgan 100% US Trs MM ($297.8B), Goldman Sachs FS Govt ($272.2B), Fidelity Inv MM: Govt Port ($270.6B), State Street Inst US Govt ($219.1B), Morgan Stanley Inst Liq Govt ($205.8B), BlackRock Lq FedFund ($198.1B), BlackRock Lq Treas Tr ($178.2B), Fidelity Inv MM: MM Port ($170.7B) and Dreyfus Govt Cash Mgmt ($159.3B). (Let us know if you'd like to see our latest domestic U.S. and/or "offshore" Weekly Portfolio Holdings collection and summary.)
Money Fund Yields Inch Down to 3.51%
Money fund yields (7-day, annualized, simple, net) decreased by 2 bps to 3.51% on average during the week ended Friday, January 16 (as measured by our Crane 100 Money Fund Index), after decreasing 5 bps the week prior. Fund yields should inch lower in coming days as they digest the last of the Fed's Dec. 10 25 bps rate cut. Yields were 3.58% on 12/31/25, 3.78% on 11/30, 3.90% on 10/31, 3.94% on 9/30, 4.11% on 8/31, 4.12% on 7/31, 4.13% on 6/30, 4.14% on 3/31/25 and 4.28% on average on 12/31/24. MMFs averaged 4.75% on 9/30/24, 5.10% on 6/28/24, 5.14% on 3/31/24 and 5.20% on 12/31/23. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 681), shows a 7-day yield of 3.41%, down 2 bps in the week through Friday. Prime Inst money fund yields were down 1 bp at 3.62% in the latest week. Government Inst MFs were down 2 bps at 3.51%. Treasury Inst MFs were down 1 bp at 3.46%. Treasury Retail MFs currently yield 3.24%, Government Retail MFs yield 3.22% and Prime Retail MFs yield 3.42%, Tax-exempt MF 7-day yields were down 36 bps to 1.03%. Money market mutual fund assets rose by $5.7 billion on Tuesday (1/6), hitting a new record high of $8.165 trillion after breaking the $8.1 trillion barrier for the first time ever on 12/26, according to our Money Fund Intelligence Daily. Assets have fallen $59.0 billion in the week through Friday and they've decreased by $24.7 billion in January month-to-date (through 1/16). MMF assets increased by $126.3 billion in December, $132.8 billion in November, $142.1 billion in October, $105.2 billion in September and $132.0 billion in August. They rose by $63.7 billion in July, $6.7 billion in June and $100.9 billion in May. But MMFs decreased $24.4 billion in April. Assets increased by $2.8 billion in March, $94.2 billion in February, and $52.8 billion last January. Weighted average maturities were at 39 days for the Crane MFA and 41 days the Crane 100 Money Fund Index. According to Tuesday's Money Fund Intelligence Daily, with data as of Friday (1/16), 158 money funds (out of 791 total) yield under 3.0% with $195.1 billion in assets, or 2.4%; 633 funds yield between 3.00% and 3.99% ($7.889 trillion, or 97.6%); and now zero funds yield over 4.0%. Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.30%, after falling 1 basis point four weeks prior. The latest Brokerage Sweep Intelligence, with data as of January 16, shows one change over the past week. RW Baird increased rates to 1.04% for accounts between $1K and $999K, to 1.61% for accounts of $1M to $1.9M and to 2.08% for accounts of $5M and greater. Four of the 10 major brokerages tracked by our BSI offer rates of 0.01% for balances of $100K (and lower tiers). These include: E*Trade, Merrill Lynch, Morgan Stanley and Schwab.
BNY Mellon Q4 Earnings Call Quotes
BNY Mellon (BK) reported 4th quarter earnings last week (see the earnings call transcript here, and CEO Robin Vince comments, "BNY has a rich 241-year history of innovation, from issuing the first loan to the U.S. government to becoming the first U.S. GSIB to offer digital asset custody. Our focus on innovating new products and solutions is centered on building trusted market infrastructure for the long term and serving our clients in new and evolving ways, including increasing delivery of new capabilities connecting the traditional and digital asset worlds. This past quarter, for example, we launched the Dreyfus Stablecoin Reserves Fund, a government money market fund designed to support stablecoin issuers and institutional participants to manage eligible reserve assets, providing BNY's cash and liquidity solutions expertise to the growing digital payments ecosystem. Our recently announced tokenized AAA CLO strategy in partnership with Securitize brings high-rated structured credit product onto the blockchain, with BNY serving as sub-advisor and custodian of the underlying assets. And just last week, we announced that we have taken the first step in our strategy to tokenize deposits by enabling the on-chain mirrored representation of client deposit balances on our digital assets platform." He also says, "Investment management and performance fees were down 2%, reflecting the mix of AUM flows and lower performance fees, partially offset by higher market values and the weaker dollar. Net interest income was up 15%, primarily driven by the reinvestment of maturing investment securities at higher yields and balance sheet growth, partially offset by deposit margin compression.... Average deposit balances increased by 4% sequentially, reflecting 4% growth in interest-bearing and 1% growth in non-interest-bearing deposits. Average interest-earning assets were up 3% quarter over quarter. Cash and reverse repo balances increased by 4%, loans increased by 5%, and investment securities portfolio balances increased by 2%." During the Q&A, BNY was asked about "your newly launched tokenized deposit capabilities and ... institutional demand for the offering." Vince responds, "We're in the business of moving, storing, and managing money. So we think we're particularly well-positioned to connect the traditional and the digital rails to really be able to enable clients. Our roadmap has really been, right from the beginning, focus on the innovation, be able to bring the capabilities online, that first with digital asset custody, stablecoin enablement. You just mentioned the tokenized deposits.... A client might want to open up a new share class in parallel to their traditional share classes. Maybe they want to open up a tokenized share class, we can do that as well. It really is these two things working in concert that we think unlocks new possibilities. We see the value of the improved efficiency, reducing friction that is real value here. When you click in, stablecoins and tokenized deposits are just two examples of all of that. Stablecoins providing the on-chain settlement currency, which is very necessary and is, frankly, because their stable value probably better than some of the other alternatives."
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