Viewpoints Revisiting Money Market Reform Pandemic-induced volatility prompts policymakers to consider money market reforms – again
Regulated money market funds (MMFs) in the U.S. have become an intense area of focus for policymakers – yet again. After these funds performed poorly in the global financial crisis of 2008, policymakers spent several years deliberating and implementing extensive changes in 2010 and again in 2016. These changes were intended to make both government and prime (credit) MMFs less vulnerable to market volatility and better positioned to meet investor liquidity demands, especially during periods of broad-based market illiquidity.While these regulatory changes were well-intentioned– and some achieved their policy goals – prime MMFs, in particular, ran into issues again during the unprecedented market turbulence of March 2020. Several fund sponsors and the Federal Reserve had to step in to shore up the funds, causing many policymakers to call for additional reforms. To Read the Full Article Log In Or Register
Viewpoints Debt Ceiling Debate: Examining Risks Around the X Date Debt ceiling concerns are rippling through financial markets. We discuss the potential risks and opportunities for investors.
Blog Regional Bank Stress Puts Spotlight on Cash Management Shocks to the U.S. banking system underscore how even cash holdings can involve risk and also suggest that the timeline for a recession may have drawn nearer.
Featured Solutions Modern Macro: A New Approach to an Old Strategy Deep uncertainty and market volatility provide fertile ground for macro hedge funds that can monetize not just the trends, but the volatility around the trends.