Run on Money Funds Ends, But Investors Shift From Prime to Treasuries

Safety Trumps Yields


By Lee Barney

September 29, 2008

Investors poured $19.64 billion into money market funds Wednesday, $26.2 billion Tuesday and $1.5 billion Monday, after yanking $186.6 billion, or 6.1%, out of money mar¬ket funds the five business days prior, according to Crane Data. By comparison, money market funds had given up just over $7 billion the pre¬vious week. Money fund assets, currently at $3.398 trillion, according to the Investment Company Institute, remain up by $178 billion, or 8.1% year-to-date and still show a huge increase-$529 billion, or 18.4%-over the trailing 52 weeks. The run on money market funds that had the Federal Reserve warn¬ing that credit markets were in danger of freezing up worldwide, appears to be over.

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