Heavy withdrawals hit prime money-market fund values -Moody's

Reuters
Updated 1 min read
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BOSTON, March 19 (Reuters) - Heavy withdrawals from U.S. prime money-market funds is putting downward pressure on their net asset values, top credit rating agency Moody's Corp said on Thursday.

Moody's said its global money market funds outlook has been revised to negative from stable, owing to unprecedented market volatility and economic uncertainty amid the coronavirus pandemic.

Over the last few days, the U.S. prime institutional money market fund segment has lost more than 10% of total portfolio assets. This sharp rise in daily outflow rates has reduced funds’ liquidity levels and placed downward pressure on funds’ net asset values, Moody's said.

Despite the pressures on fund liquidity, U.S. institutional prime money market fund duration and credit profiles remain solid, Moody's said. (Reporting By Tim McLaughlin Editing by Nick Zieminski)

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