Getting Deposits From The River Of Money Market Funds
2a7 money market mutual fund reform continues to cause short-term liquidity outflows. Last month (June), $110B flowed out of money market funds and into other short-term investments. During this time, the average maturity of these money market funds shortened from 29 days to 24 days. Further, the short-term part of the yield curve decreased and flattened. Why would a bank care?
