Survey of Investors Indicates Prime Money Market Funds (MMFs) are Less Attractive once SEC Reforms are Operative October 14

Treasury Strategies:
Corporate Survey of Plans for Using Money Market Funds, May 2016

SEC reforms, effective October 14, 2016, will impose floating Net Asset Values (NAV) and redemption gates on Prime MMFs.

When surveyed investors were what their plans were, after the new SEC regulation’s October 14 effective date:

  • 42% plan to discontinue using Prime MMFs, at least initially
  • 28% are undecided
  • 30% plan to continue investing in Prime MMFs

With the decline of MMFs and the ultra-low even negative yields of demand bank deposits, there is a clear call for a new par value cash investment.  

The mCD is just such an instrument.