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