US MMFs warm to EU banks, but move on from CP

By Kathleen Gallagher
16 Apr 2014

US money market funds' allocations to European banks are at their highest level since September 2011, according to a Moody’s report. But the funds are starting to put their money into bonds rather than commercial paper.

Money market funds invested about 31% of their total investments in European financial institutions, according to a Moody’s report — up from 25% at the end of 2013.

The funds used to focus on three month notes but have started looking for longer dated paper.

“Money ...

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