A $1 Trillion Paradigm Shift Changes Funding Markets Forever
- BlackRock, Fidelity say money-fund reform is boon for Treasury
- Floating NAV comes at expense of banks, corporate borrowers
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It’s the most sweeping change for U.S. money market funds in over three decades and the biggest operators say it’ll have a permanent effect on the way investors allocate their capital.
After years of wrangling with regulators, the $2.7 trillion industry will give up its rock-solid, dollar-for-dollar guarantee for institutional funds that invest mainly in riskier, non-government debt.