MMF decision from the SEC looms but funds already leaning on Fed

By Kathleen Gallagher
28 Mar 2014

The US Securities and Exchange Commission (SEC) is deadlocked over changes that will let many money market funds keep their stable net asset value, rather than floating their asset value to make it clear that MMFs are investments, not deposits.

As the SEC backtracks from the floating NAV rules, MMF investors are getting something increasingly cash-like to back their investment, since funds are increasingly choosing to park their cash at the Fed's reverse repo facility, rather than put it into the private market.

The SEC has reached a deadlock ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial