How banks weathered the money market storm
Bank funding desks tapped standalone accounts and offshore investors for cash as prime funds slumped
Since the US Securities and Exchange Commission (SEC) adopted its money market fund (MMF) reforms two years ago, bank funding desks have watched with growing anxiety as investors pulled more than $1 trillion from 'prime' funds, which invest in commercial paper issued by corporates and financials as well as government debt.
The outflows began after the SEC revised Rule 2a-7 in July 2014 to require MMFs that invest in commercial paper to establish floating net asset values (NAVs) and redemption
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