The run on money market funds looks to be changing. Investors have steadily been pulling cash out of their money market funds over the past few weeks on news of the implosion of the Reserve Primary Fund.
But new data indicates they may be regaining confidence in the funds. For the week that ended September 30, assets in money funds rose $12.4 billion, according to iMoneyNet. Institutional investors were responsible for $9 billion of that gain, and $3.4 billion flowed in from individual investors.
The Treasury Department's money-fund bailout is most likely responsible for the asset inflows. Announcements from major fund companies that they'll participate in the guarantee program presumably played a part as well.
Bill of MD @ Oct 04, 2008 10:26:11 AM