...European CNAV Assets at Historical High in November: Inflows into US dollar and sterling-denominated CNAV money market funds (MMFs) in 4Q15 pushed assets in the overall European CNAV MMF segment to EUR580.7bn at end-2015 (up 13% yoy), after having reached its historical high of EUR585.2bn at end-November 2015. This emphasises a sustained demand for liquidity products as cash remains high on corporate treasurers' balance sheets. Euro CNAV assets have stabilised at EUR70bn this quarter, slightly lower than at end- 3Q15 (-2.4%), but were down by more than 18% in 2015 due to large outflows in 2Q15 after funds' yield turned negative in April. Pronounced Sector Shift in Euro MMFs; Stabilisation in Other Currencies: Sector reallocations have materially altered euro MMFs in the past two years and in 4Q15. Financials (both unsecured and secured via repo) were reduced continuously to the benefit of non- financial corporates and sovereigns, supranationals and agencies (SSAs). A similar but less pronounced...
