The Investment Company Institute reports total money fund assets fell a net $169 billion for the week ending Sept. 17th, ending at $3.413 trillion.
Institutional money fund redemptions totalled $173 billion and assets ended at $2.17 trillion, a 7.4% decline, while retail fund assets ended at $1.24 trillion, an increase of $4.3 billion, a 0.3% rise.
Institutions are heading for the exits. No one wants to be standing when the music stops.
Bloomberg update 09/18/2008, 05:41pm EDT
Money Market Funds Status As of September 18, 03:30pm EST:
Reserve Management Corporation: The Primary Fund, after a $40 billion redemption "run" on Monday, 09/15/2008 and Tuesday, 09/16/2008, following its disclosure of $785 million Lehman-related bond write-offs, announces a suspension of most redemptions for seven days after 3:00pm EST, Tuesday, 09/16/2008. Remaining $23 billion valued 09/16/2008 at NAV $0.97, "breaking the buck." Reserve Management, as an independent firm, has no "deep-pockets" parent company on which to rely for a bailout of the fund and could not, or would not, borrow to make the fund whole.
Bloomberg updated story 09/18/2008
Reserve Management press release 09/16/2008
Evergreen Investment Management Company: Evergreen receives cash injection of $494 million from parent-company Wachovia Corp. which has entered into support agreements with Evergreen Money Market Fund, Evergreen Institutional Money Market Fund, and Evergreen Prime Cash Management Fund in which Wachovia will support the value of Lehman credit held in the Funds. These agreements are intended to ensure that the decline in the value of the Lehman debt will not result in a decrease in the net asset value of the Evergreen money market funds.
Bloomberg updated story (at bottom) 09/16/2008
Evergreen press release 09/17/2008
Putnam Investments: Prime Institutional MMF, $15 billion, redemptions suspended as of close of business 09/17/2008 after fund assets declined to $12.3 billion on heavy redemption requests. Fund to be closed/liquidated, undetermined time-frame, and net proceeds (which could be less than $1.00/share) distributed to remaining institutional shareholders.
Reuters story 09/18/2008
Putnam Investments press release 09/18/2008
BNY Mellon: BNY Mellon Institutional Cash Reserves Fund, with assets of $22 billion, fell to $0.991 a share on Sept. 16. The New York-based company has ``isolated the Lehman assets in the fund into a separate structure,'' Ivan Royle, a spokesman for the New York-based company, said today.
The fund invests cash deposited as collateral by clients who borrow securities from BNY Mellon, the world's largest custody bank. Lehman debt represented 1.13 percent of the fund's holdings.
No BNY Mellon press release available
More to come?
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