{"id":33643,"date":"2016-09-14T01:06:28","date_gmt":"2016-09-14T06:06:28","guid":{"rendered":"http:\/\/prefblog.com\/?p=33643"},"modified":"2016-09-14T01:06:28","modified_gmt":"2016-09-14T06:06:28","slug":"september-13-2016","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=33643","title":{"rendered":"September 13, 2016"},"content":{"rendered":"

We are approaching the end-game of the US Money Market Fund re-regulation<\/a>:<\/p>\n

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\u2019 cross hairs.<\/p>\n

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\u2019 and other companies\u2019 short-term debt and raising their funding costs.<\/p>\n

The transformation of the money-fund industry, where investors turn to park cash, is a result of regulators\u2019 efforts to make the financial system safer in the aftermath of the credit crisis. The key date is Oct. 14, when rules take effect mandating that institutional prime and tax-exempt funds end an over-30-year tradition of fixing shares at $1. Funds that hold only government debt will be able to maintain that level. Companies such as Federated Investors Inc. and Fidelity Investments, which have already reduced or altered prime offerings, are preparing in case investors yank more money as the new era approaches.
…<\/b>
A major repercussion of the flight from prime funds is that there\u2019s less money flowing into commercial paper and certificates of deposit, which banks depend on for funding. As a result, banks\u2019 unsecured lending rates, such as the dollar London interbank offered rate, have soared. Three-month Libor reached about 0.86 percent Tuesday, the highest since 2009.<\/p><\/blockquote>\n

\"PrimeFundAssets_160913\"<\/a>
Click for Big<\/i><\/div>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices<\/strong>
Values are provisional and are finalized monthly<\/td>\n<\/tr>\n
Index<\/td>\nMean
Current
Yield
(at bid)<\/td>\n		Median
YTW<\/td>\n		Median
Average
Trading
Value<\/td>\n		Median
Mod Dur
(YTW)<\/td>\n		Issues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.6155 %<\/td>\n1,690.4<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.6155 %<\/td>\n3,088.0<\/td>\n<\/tr>\n
Floater<\/td>\n4.89 %<\/td>\n4.61 %<\/td>\n88,507<\/td>\n16.24<\/td>\n4<\/td>\n0.6155 %<\/td>\n1,779.6<\/td>\n<\/tr>\n
OpRet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1749 %<\/td>\n2,873.0<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.07 %<\/td>\n4.72 %<\/td>\n73,931<\/td>\n2.19<\/td>\n5<\/td>\n-0.1749 %<\/td>\n3,431.0<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1749 %<\/td>\n2,677.0<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.51 %<\/td>\n4.64 %<\/td>\n68,955<\/td>\n1.98<\/td>\n12<\/td>\n-0.1530 %<\/td>\n2,671.4<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.15 %<\/td>\n5.17 %<\/td>\n100,156<\/td>\n15.09<\/td>\n26<\/td>\n-0.0359 %<\/td>\n2,895.6<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.01 %<\/td>\n4.50 %<\/td>\n153,014<\/td>\n6.95<\/td>\n91<\/td>\n-0.0695 %<\/td>\n2,029.1<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.03 %<\/td>\n4.04 %<\/td>\n118,542<\/td>\n0.37<\/td>\n32<\/td>\n-0.0673 %<\/td>\n2,795.0<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.83 %<\/td>\n3.99 %<\/td>\n26,983<\/td>\n5.02<\/td>\n12<\/td>\n-0.0393 %<\/td>\n2,203.1<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
TRP.PR.F<\/td>\nFloatingReset<\/td>\n-2.34 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-13
\nMaturity Price : 13.38
\nEvaluated at bid price : 13.38
\nBid-YTW : 4.56 %<\/td>\n<\/tr>\n
CU.PR.C<\/td>\nFixedReset<\/td>\n-2.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-13
\nMaturity Price : 18.07
\nEvaluated at bid price : 18.07
\nBid-YTW : 4.37 %<\/td>\n<\/tr>\n
PWF.PR.T<\/td>\nFixedReset<\/td>\n-1.77 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-13
\nMaturity Price : 19.47
\nEvaluated at bid price : 19.47
\nBid-YTW : 4.19 %<\/td>\n<\/tr>\n
IFC.PR.C<\/td>\nFixedReset<\/td>\n-1.50 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 17.30
\nBid-YTW : 8.62 %<\/td>\n<\/tr>\n
MFC.PR.N<\/td>\nFixedReset<\/td>\n-1.47 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 18.13
\nBid-YTW : 7.97 %<\/td>\n<\/tr>\n
VNR.PR.A<\/td>\nFixedReset<\/td>\n-1.41 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-13
\nMaturity Price : 18.24
\nEvaluated at bid price : 18.24
\nBid-YTW : 4.98 %<\/td>\n<\/tr>\n
TRP.PR.G<\/td>\nFixedReset<\/td>\n-1.13 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-13
\nMaturity Price : 20.07
\nEvaluated at bid price : 20.07
\nBid-YTW : 4.64 %<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset<\/td>\n1.14 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 14.17
\nBid-YTW : 9.82 %<\/td>\n<\/tr>\n
BAM.PF.F<\/td>\nFixedReset<\/td>\n1.16 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-13
\nMaturity Price : 19.93
\nEvaluated at bid price : 19.93
\nBid-YTW : 4.68 %<\/td>\n<\/tr>\n
BAM.PF.G<\/td>\nFixedReset<\/td>\n1.24 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-13
\nMaturity Price : 20.29
\nEvaluated at bid price : 20.29
\nBid-YTW : 4.62 %<\/td>\n<\/tr>\n
BAM.PR.Z<\/td>\nFixedReset<\/td>\n1.30 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-13
\nMaturity Price : 19.15
\nEvaluated at bid price : 19.15
\nBid-YTW : 4.93 %<\/td>\n<\/tr>\n
BAM.PF.A<\/td>\nFixedReset<\/td>\n1.36 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-13
\nMaturity Price : 19.15
\nEvaluated at bid price : 19.15
\nBid-YTW : 4.85 %<\/td>\n<\/tr>\n
BAM.PR.K<\/td>\nFloater<\/td>\n1.37 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-13
\nMaturity Price : 10.29
\nEvaluated at bid price : 10.29
\nBid-YTW : 4.59 %<\/td>\n<\/tr>\n
BAM.PF.E<\/td>\nFixedReset<\/td>\n1.45 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-13
\nMaturity Price : 18.91
\nEvaluated at bid price : 18.91
\nBid-YTW : 4.63 %<\/td>\n<\/tr>\n
BAM.PF.B<\/td>\nFixedReset<\/td>\n1.58 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-13
\nMaturity Price : 17.94
\nEvaluated at bid price : 17.94
\nBid-YTW : 4.85 %<\/td>\n<\/tr>\n
BAM.PR.R<\/td>\nFixedReset<\/td>\n1.75 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-13
\nMaturity Price : 15.45
\nEvaluated at bid price : 15.45
\nBid-YTW : 4.89 %<\/td>\n<\/tr>\n
BAM.PR.X<\/td>\nFixedReset<\/td>\n2.51 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-13
\nMaturity Price : 13.50
\nEvaluated at bid price : 13.50
\nBid-YTW : 4.79 %<\/td>\n<\/tr>\n
BAM.PR.T<\/td>\nFixedReset<\/td>\n2.55 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-13
\nMaturity Price : 15.45
\nEvaluated at bid price : 15.45
\nBid-YTW : 4.99 %<\/td>\n<\/tr>\n
BAM.PR.S<\/td>\nFloatingReset<\/td>\n3.69 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-13
\nMaturity Price : 14.70
\nEvaluated at bid price : 14.70
\nBid-YTW : 4.80 %<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nShares
Traded<\/td>\n		Notes<\/td>\n<\/tr>\n
TD.PF.H<\/td>\nFixedReset<\/td>\n663,207<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-10-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.47
\nBid-YTW : 4.51 %<\/td>\n<\/tr>\n
BAM.PF.C<\/td>\nPerpetual-Discount<\/td>\n166,291<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-13
\nMaturity Price : 22.58
\nEvaluated at bid price : 22.90
\nBid-YTW : 5.29 %<\/td>\n<\/tr>\n
FTS.PR.H<\/td>\nFixedReset<\/td>\n132,900<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-13
\nMaturity Price : 13.75
\nEvaluated at bid price : 13.75
\nBid-YTW : 4.07 %<\/td>\n<\/tr>\n
TD.PF.G<\/td>\nFixedReset<\/td>\n115,200<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.75
\nBid-YTW : 4.01 %<\/td>\n<\/tr>\n
BMO.PR.Z<\/td>\nPerpetual-Premium<\/td>\n84,833<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2024-08-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.49
\nBid-YTW : 4.77 %<\/td>\n<\/tr>\n
TD.PF.A<\/td>\nFixedReset<\/td>\n66,700<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-13
\nMaturity Price : 18.40
\nEvaluated at bid price : 18.40
\nBid-YTW : 4.28 %<\/td>\n<\/tr>\n
There were 46 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n
Wide Spread Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nQuote Data and Yield Notes<\/td>\n<\/tr>\n
IFC.PR.A<\/td>\nFixedReset<\/td>\nQuote: 15.24 – 15.75
\nSpot Rate : 0.5100
\nAverage : 0.2929<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 15.24
\nBid-YTW : 9.74 %<\/td>\n<\/tr>\n

TRP.PR.F<\/td>\nFloatingReset<\/td>\nQuote: 13.38 – 13.90
\nSpot Rate : 0.5200
\nAverage : 0.3269<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-13
\nMaturity Price : 13.38
\nEvaluated at bid price : 13.38
\nBid-YTW : 4.56 %<\/td>\n<\/tr>\n

TRP.PR.H<\/td>\nFloatingReset<\/td>\nQuote: 10.45 – 10.95
\nSpot Rate : 0.5000
\nAverage : 0.3902<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-13
\nMaturity Price : 10.45
\nEvaluated at bid price : 10.45
\nBid-YTW : 4.30 %<\/td>\n<\/tr>\n

PVS.PR.B<\/td>\nSplitShare<\/td>\nQuote: 24.78 – 25.09
\nSpot Rate : 0.3100
\nAverage : 0.2153<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2019-01-10
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.78
\nBid-YTW : 4.82 %<\/td>\n<\/tr>\n

MFC.PR.F<\/td>\nFixedReset<\/td>\nQuote: 13.32 – 13.59
\nSpot Rate : 0.2700
\nAverage : 0.1876<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 13.32
\nBid-YTW : 10.79 %<\/td>\n<\/tr>\n

POW.PR.B<\/td>\nPerpetual-Discount<\/td>\nQuote: 25.06 – 25.27
\nSpot Rate : 0.2100
\nAverage : 0.1436<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-13
\nMaturity Price : 24.85
\nEvaluated at bid price : 25.06
\nBid-YTW : 5.42 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

We are approaching the end-game of the US Money Market Fund re-regulation: 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 …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-33643","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/33643","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=33643"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/33643\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33643"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33643"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33643"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}