Money Markets

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Jerome M. Schneider, Head of Short-Term Portfolio Management at PIMCO, joined ETF Trends publisher Tom Lydon to discuss short-term bond ETF options that investors and financial advisors can use for capital preservation. For instance, PIMCO offers the PIMCO Enhanced Short Maturity Active ETF (NYSEArca: MINT) and the PIMCO Low Duration Active ETF, (NYSEArca: LDUR). While […]

With the Federal Reserve likely to hike short-term rates from near zero levels, one group of fixed-income investors who utilize money market funds and ultra-short-term bond exchange traded funds as cash alternatives may stand to benefit. The extended near-zero-rate environment has depressed returns for money market funds that invest in assets with maturities of 12 […]

Ahead of regulatory changes in the money market funds, Fidelity Investments is converting a few of its money funds. Investors who are wary about regulatory repercussions can also turn to ultra-short-duration bond exchange traded funds as cash alternatives. Fidelity is reshuffling three prime funds to government funds that invest in cash, government securities or repurchase […]

I do the “ETF of the Week” for MarketWatch every Thursday on Chuck Jaffe’s MoneyLife Show where I highlight big movers and disappointments among exchange traded funds. On Thursday, I focused on the money market fund industry and the PIMCO Enhanced Short Maturity ETF (NYSArca: MINT). Now that the SEC has announced new money market […]

With the Securities and Exchange Commission adopting new reform rules for the $2.6 trillion money market fund market, large institutional investors could turn to easy-to-use, ultra-short-duration bond exchange traded fund as a suitable alternative. The SEC is implementing new rules to deter runs in money market funds, similar to what happened during the height of […]

Ultra-short-duration bond exchange traded funds have garnered attention as an alternative to money market funds with the SEC set to implement structure changes in coming months. However, the SEC could scale down rules to exempt some investors. The Securities and Exchange Commission is expected to broaden exemptions for mom-and-pop retail investors from requirements that certain […]

Ultra-short-duration bond exchange traded funds have popped up as an alternative to money market funds as Fed leaders push for tighter rules while financial leaders point to increased costs. The 12 heads of regional Federal Reserve bank warned that Securities and Exchange Commission’s proposed regulatory reforms in the $2.6 trillion money-market mutual fund industry is […]

Top money market fund manager Charles Schwab (NYSE: SCHW) has filed to launch ultrashort-duration bond ETFs as the nearly $3 trillion money market industry faces SEC reform measures. Late last week, Schwab filed a registration statement to list three active bond ETFs that would provide alternatives to money market funds, Ignites.com reports. The planned funds […]

A floating net asset value on money market funds could cause operational and accounting issues that would deter money fund investors and potentially divert money toward short-duration bond exchange traded funds as an alternative. According to a U.S. Chamber of Commerce Center for Capital Markets Competitiveness (CCMC) report, operational complexity, systems alternatives and business process […]

The Securities and Exchange Commission believes there is not enough diversification among money funds, adding onto the money market reform rhetoric and potentially putting more ammunition behind ultra-short-duration bond exchange traded funds. According to the SEC, money funds rely on a small number of issuers, reports Peter Ortiz for Ignites. [Money Market Debate Puts Focus […]

PIMCO Enhanced Short Maturity (NYSEArca: MINT) was one of the best-selling ETFs in June as more investors are using short-duration ETFs in place of money market funds, which are facing reform measures. MINT gathered net inflows of more than $700 million last month, according to IndexUniverse data. “Near-zero yields on money-market funds have led some […]

I do the “ETF of the Week” for MarketWatch every Thursday on Chuck Jaffe’s MoneyLife Show where I highlight big movers and disappointments within the exchange traded fund market. On Thursday, I highlighted the PIMCO Enhanced Short Maturity ETF (NYSEArca: MINT) and Guggenheim Enhanced Short Duration Bond ETF (NYSEArca: GSY). With the Securities and Exchange […]

The Investment Company Institute is staunchly against SEC reforms to float the net asset value on money markets but believes a type of “gates and fees” could pose as a better solution. In either case, short-term bond exchange traded funds stand to gain a competitive advantage. “Let’s check the count against floating NAVs,” ICI President and […]

Ultra short-term fixed-income exchange traded funds could gain a competitive advantage as the Securities and Exchange Commission mulls over money market fund reforms. Short-term bond ETFs provide an attractive alternative to investors who are seeking a relatively safe and cash-like substitute. For instance, the actively managed PIMCO Enhanced Short Maturity ETF (NYSEArca: MINT) has a […]

Potential money market fund reforms could deter investors, triggering consolidation in the money market, and push others to alternative options, like short-duration bond exchange traded funds. According to a Moody’s Investors Service, we will likely witness a “reshaping of the industry,” with providers forced to consolidate or exit the business, reports Joe Morris for Ignites. […]

The Securities and Exchange Commission is “actively” working on balanced reforms to address risks in the $2.6 trillion money market fund industry, which could push investors to ultra-short-duration bond ETFs as a viable alternative. “The staff and Commissioners are actively engaged in discussions designed to yield an appropriate and balanced proposal in the near future,” […]

The $2.6 trillion money market landscape could be shifting as the industry faces broad regulatory changes. Meanwhile, some are beginning to look toward short-duration bond exchange traded funds as a suitable alternative to money market funds. Proposals for a floating NAV and other regulatory changes to the money markets have been previously voted down in […]

With U.S. regulators taking a closer look at money market funds, fund managers are trying to take preemptive steps to thwart regulatory actions. Still, observers doubt it is enough and some investors are contemplating short-duration bond exchange traded funds as an alternative. Wells Fargo Advantage Funds is the latest to start posting daily disclosures of […]

Short-duration bond exchange traded funds are beginning to look more attractive relative to money market funds as the federal government and regulatory bodies scrutinize vulnerability in the $2.7 trillion money fund industry. The Financial Stability Oversight Council is calling for greater regulations to limit the risk to investors of money market funds, reports Mark Koba […]

The drumbeat is growing louder for more investors to consider short-duration bond ETFs with money market mutual funds facing the loss of some of their key competitive advantages. All 12 Federal Reserve Bank regional presidents in a letter to the Financial Stability Oversight Council said they support money market mutual fund reform. The move provides […]

Short-duration bond ETFs such as PIMCO Enhanced Short Maturity Strategy (NYSEArca: MINT) are getting a closer look from investors frustrated with rock-bottom yields in money market funds. Reports that the Securities and Exchange Commission is taking another stab at reforming the money fund business are also driving interest in the ETFs. Other ETFs in the […]

Money market funds are back in the spotlight with some managers recently announcing increased disclosure, including releasing the value of money funds on a daily basis. I still think this story isn’t getting the press it deserves. With $2.7 trillion in assets under management, or twice the size of the exchange traded fund universe, a […]

Money market funds are back in the news after Goldman Sachs (NYSE: GS), JP Morgan (NYSE: JPM) and other firms this week said they plan daily disclosure of net asset value for their money funds. Goldman and JP Morgan “have insisted their new stance on disclosures does not signal a change in their opposition to […]

The multi-trillion dollar money market fund business is facing renewed efforts on regulatory reform, putting investors on edge. Nevertheless, what may be a bane for the money markets could be a boon for short-duration bond exchange traded funds. “The council is seeking comment on other potential reforms of [money market funds] that meet the objectives […]

More investors are taking a look at short-duration bond ETFs amid talk of reform measures that could take away some of the competitive advantages of money market mutual funds. Outgoing SEC Chairwoman Mary Schapiro had fought to implement regulatory changes in the huge money fund business, which controls nearly $3 trillion in assets, after the […]

SEC Commissioner Elisse Walter will be the next chairwoman for at least awhile and could possibly renew talks about money market reforms. Meanwhile, Schwab has filed for an actively managed short-term bond exchange traded fund that could provide a competitive alternative to low yield money market funds. When SEC Chair Mary Schapiro first spearheaded proposals […]

With the regulatory spectre looming over the money market fund industry, corporate treasurers and investors have begun shopping around for safe alternatives, like short-term bond exchange traded funds. After the financial depression of 2008, the Securities and Exchange Commission has looked into preventative measures to keep money markets from imploding. For instance, SEC Chairman Mary […]

U.S. regulators are already scrutinizing money market funds and even considering radical changes to one of the stable norms within the market. However, asset managers are already looking for a contingency plan in exchange traded fund products for potential changes. Regulators are looking at money market funds as a potential bailout waiting to happen, similar […]