From Money Market Insight™: Prime-fund portfolio holdings rebounded in November from the prior month’s 22.4 percent overall decline, according to preliminary data reviewed by iMoneyNet.
Investments by prime-fund portfolio managers in certificates of deposit, the largest holdings category, were up slightly to $125.86 billion, a gain of 0.7 percent. Investments in non-negotiable time deposits, which experienced a nearly 39.0 percent decline last month, fell by only 2.2 percent in November to total $41.85 billion. Financial-company commercial paper edged downward to $66.48 billion, a 0.5 percent decline but less than last month’s 1.4 percent drop. Nonfinancial commercial paper grew by 13.4 percent to $20.04 billion – the second consecutive monthly increase – and asset-backed commercial paper rallied from a 2.0 percent October decline to total $32.08 billion, a gain of 4.9 percent.
Investments in U.S. Treasury debt increased slightly to $38.98 billion, or 0.9 percent, but investments in U.S. government-agency debt fell sharply for the second consecutive month to total $429.5 million, a loss of 73.0 percent. Investments fell in both U.S. government-agency and U.S. Treasury repurchase agreements: government-agency repo fell by 7.5 percent to $8.48 billion and Treasury repo to $9.38 billion, a loss of 12.4 percent. Investments in tender-option bonds rose 29.5 percent to total $1.42 billion, but variable-rate demand notes were off by 6.3 percent and settled at $25.24 billion.
For the month of November, total prime-fund portfolio holdings, based on the market values of all securities as reported on Form N-MFP, settled at $404.95 billion, a monthly decrease of $795.4 million, or 0.2 percent.
Five of the Top 10 countries of risk attracted higher total fund investments in November than in the prior month when all 10 experienced declines. U.S. entities attracted total investments of $118.00 billion, down from $121.96 billion in October, a loss of 3.3 percent. The U.S. share of total investments settled at 29.1 percent, down from 30.1 percent in the prior month. In the next three spots, Canada, France, and Japan all recovered from October declines: Canada attracted investments of $54.29 billion (up by 11.6 percent); France, investments of $50.46 billion (up 5.3 percent); and Japan, investments of $45.40 billion (up 0.7 percent). Investments in Sweden, in fifth place, totaled $28.88 billion, a monthly decline of 4.1 percent. Among the next five countries, investments in Australia and the Netherlands (6th and 8th places, respectively) rose, investments the U.K. (7th place), Germany (9th place), and Switzerland (10th place) declined by 13.6 percent, 8.6 percent, and 9.5 percent, respectively.