Despite record low interest rates, money market fund assets have held their own, according to a survey from Moodys Investors Service. In addition, the credit quality of money fund portfolios has remained high.
The survey covers the 10 largest retail money market funds and looks at all of 2002 and the first two months of 2003. Portfolio assets remain concentrated in three areas, which together account for 87% of portfolio assets: commercial paper (34.7%), certificates of deposit (24.9%) and U.S. Treasury and government agency securities (27%). Money funds are also invested in bank notes, corporate notes, funding agreements and repurchase agreements.