OFR Monitor Shows U.S. Money Market Funds Remain a Popular Parking Option for Investor Cash

Office of Financial Research sent this bulletin at 09/25/2024 10:02 AM EDT

Having trouble viewing this email? View it as a Web page.

OFR Monitor Shows U.S. Money Market Funds Remain a Popular Parking Option for Investor Cash

A new blog provides an overview of changes to MMF during the review period. Using SEC N-MFP data, the author finds that MMFs continued to increase their investment in repurchase agreements (repos) with banks and dealers, as their participation in the Federal Reserve’s Overnight Reverse Repo Facility (ON RRP) overall decreased during the observation period. The transactions are generally backed by collateral with a value that exceeds the cash MMFs lend, which should be protected the fund if a repo counterparty defaults, provided the collateral value is marked-to-market daily and adjusted accordingly.

Read the blog

About the OFR

The Office of Financial Research (OFR) helps to promote financial stability by looking across the financial system to measure and analyze risks, perform essential research, and collect and standardize financial data.

Connect with Us

Connect on LinkedIn
Follow us on Twitter
Explore Our Data
Read our Publications
The OFR Blog

Update your subscriptions, modify your password or email address, or stop subscriptions at any time on your Subscriber Preferences Page. You will need to use your email address to log in. If you have questions or problems with the subscription service, please visit subscriberhelp.govdelivery.com.

This service is provided to you at no charge by Office of Financial Research.