September 9, 2024 (NO COMMENTS)

Fed facility sees continued outflows as funds redirect assets

 

US money market fund (MMF) repos funnelled through the Fixed Income Clearing Corporation (FICC) surged 17.8% to a record $634.9 billion at the end of July, as fund managers continued to shift cash away from the Federal Reserve’s reverse repo programme (RRP). FICC-cleared balances accounted for 24.6% of MMFs’ total reverse repo investments – the highest proportion ever recorded – according to data from the Office of Financial Research (OFR). In contrast, only 14.8% of MMF repo investments remained