Skip to main content

RPT-Fitch: Credit Suisse Saw Only Moderate US Money Fund Outflows

(The following statement was released by the rating agency)

Money market fund outflows from Credit Suisse were only moderate in May following its guilty plea to helping US clients evade tax, Fitch Ratings says.

Money fund flows are driven by various factors, including pricing, and can react to headline risk either by reducing exposures or by shortening maturities. class="mandelbrot_refrag">Banks do not rely on these short-term funds and in most instances place deposits from the money funds with the Federal Reserve.

 
 
 

US prime money fund allocations to Credit Suisse fell 8% in May compared to relatively stable total prime fund assets, according to data from Crane. The monthly decline is higher than the average monthly variance of 4.8% for Credit Suisse's money fund exposures over the previous six months. But the exposures are still slightly above the end-2013 level, so the overall fall is not material. The bank was still one of the top 15 held names, comprising $39bn, or 2.6% of money fund assets.

There were stark contrasts at the fund manager level with some counterparties reducing allocations and others raising exposures to Credit Suisse. The largest decrease for a fund manager was approximately USD1bn, or 23% of the fund manager's exposure to the bank. Further downward or upward adjustments are possible as the settlement is digested, but the impact on overall money fund allocations is likely to be limited. As we have said previously, we do not believe the fine and guilty plea from Credit Suisse's settlement on May 19 will cause significant damage to its franchise.

Money fund exposures to BNP Paribas, which is involved in an ongoing investigation on US sanctions breaches, increased slightly in May to 2.7% of assets, up 0.1pp from end-April. Allocations to the bank were USD1bn or 2.8% higher than April, even though total money fund assets were broadly flat. There was, however, a wide range of allocation changes among the fund manager mix, like at Credit Suisse.

Bank of America, which is in discussions with the US Department of Justice on various mortgage related issues, also saw an increase in money fund allocations. Money fund exposures to BAC increased by USD1.9bn or 6.7% during May, reaching 2.0% of total money fund assets.

Popular posts from this blog

Study Abroad USA, College of Charleston, Popular Courses, Alumni

Thinking for Study Abroad USA. School of Charleston, the wonderful grounds is situated in the actual middle of a verifiable city - Charleston. Get snatched up by the wonderful and customary engineering, beautiful pathways, or look at the advanced steel and glass building which houses the School of Business. The grounds additionally gives students simple admittance to a few major tech organizations like Amazon's CreateSpace, Google, TwitPic, and so on. The school offers students nearby as well as off-grounds convenience going from completely outfitted home lobbies to memorable homes. It is prepared to offer different types of assistance and facilities like clubs, associations, sporting exercises, support administrations, etc. To put it plainly, the school grounds is rising with energy and there will never be a dull second for students at the College of Charleston. Concentrate on Abroad USA is improving and remunerating for your future. The energetic grounds likewise houses various

Best MBA Online Colleges in the USA

“Opportunities never open, instead we create them for us”. Beginning with this amazing saying, let’s unbox today’s knowledge. Love Business and marketing? Want to make a high-paid career in business administration? Well, if yes, then mate, we have got you something amazing to do!   We all imagine an effortless future with a cozy house and a laptop. Well, well! You can make this happen. Today, with this guide, we will be exploring some of the top-notch online MBA universities and institutes in the USA. Let’s get started! Why learn Online MBA from the USA? Access to More Options This online era has given a second chance to children who want to reflect on their careers while managing their hectic schedules. In this, the internet has played a very crucial in rejuvenating schools, institutes, and colleges to give the best education to students across the globe. Graduating with Less Debt Regular classes from high reputed institutes often charge heavy tuition fees. However onl

Sickening moment maskless 'Karen' COUGHS in the face of grocery store customer, then claims she doesn't have to wear a mask because she 'isn't sick'

A woman was captured on camera following a customer through a supermarket as she coughs on her after claiming she does not need a mask because she is not sick.  Video of the incident, which has garnered hundreds of thousands of views on Twitter alone, allegedly took place in a Su per Saver in Lincoln, Nebraska according to Twitter user @davenewworld_2. In it, an unidentified woman was captured dramatically coughing as she smiles saying 'Excuse me! I'm coming through' in the direction of the customer recording her. Scroll down for video An unidentified woman was captured dramatically coughing as she smiles saying 'Excuse me! I'm coming through' in the direction of a woman recording her A woman was captured on camera following a customer as she coughs on her in a supermarket without a mask on claiming she does not need one because she is not sick @chaiteabugz #karen #covid #karens #karensgonewild #karensalert #masks we were just wearing a mask at the store. ¿ o