investment managers are combating for the way forward for cash-market funds.
simply over a year in the past, jittery traders withdrew from the markets over situation the pandemic would devastate the financial system. money dollars emerged as a flashpoint in March 2020, when companies and pension managers raced to stockpile money, and the companies that managed these funds struggled to promote sufficient bonds to fulfill those redemptions.
Now economic regulators are weighing rule changes designed to ensure that these dollars fare greater in the next crisis.
Asset managers have supported one of the regulators' concepts, including one that could be certain larger-yielding leading money funds will weather future runs devoid of the need for govt assist. other proposals, they argue, would render many money too costly to manage. they've made those opinions typical in comment letters and meetings with Securities and alternate commission officials.
"I don't believe the SEC is in a seat where they need this industry to die a quick loss of life or a slow and painful loss of life," said Debbie Cunningham, investment chief of international liquidity markets at Federated Hermes Inc., including that lots of the regulators' ideas would accomplish one or the other. officials on the SEC "understand that," she noted.
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