...Money fund managers' transition of prime funds into government funds is almost complete. In response to the SEC's money fund reforms, over the past few months, fund managers designated more than 30 funds that will convert from prime to government assets, with an estimated $259 billion in assets under management. Prior to the conversion announcements, these funds held $66 billion in government securities; however, since then, fund managers have transitioned $152 billion of their assets from prime to government, with approximately $41 billion remaining to shift. The movement of such large positions is set to impact the short-term markets, benefiting government securities while reducing demand for bank and corporate debt. Fourteen funds have now completely transitioned from prime to government, including a few of the largest funds that intended to convert to government, such as the $116 billion Fidelity Cash Reserves and the $25 billion Franklin Templeton Money Market Portfolio. Conversion...
