There’s a $300 Billion Exodus From Money Markets Ahead

  • Final wave of cash set to move from prime, muni funds
  • Shift seen before Oct. 14 compliance date for floating NAVs

With a seismic overhaul of the $2.6 trillion money-market industry weeks away from kicking in, money managers are bracing for a last-minute exodus of as much as $300 billion from funds in regulators’ cross hairs.

Prime funds, which seek higher yields by buying securities like commercial paper, are at the center of the upheaval. Their assets have already plunged by almost $700 billion since the start of 2015, to $789 billion, Investment Company Institute data show. The outflow has rippled across financial markets, shattering demand for banks’ and other companies’ short-term debt and raising their funding costs…

There’s a $300 Billion Exodus From Money Markets Ahead

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