Report

Money Market Mutual Funds: Runs, Emergency Liquidity Facilities, and Potential Reforms


Abstract: This note describes past runs on non-government money market mutual funds and official sector actions that were taken to stem the runs. In addition, it highlights other cash management vehicles that may have vulnerabilities similar to those of non-government MMMFs. Finally, it proposes that converting all non-government MMMFs into government MMMFs could substantially reduce the likelihood of future official sector support for MMMFs.

Keywords: money market mutual funds; short-term funding markets; financial stability risk;

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Provider: Federal Reserve Bank of Boston

Part of Series: Supervisory Research and Analysis Notes

Publication Date: 2021-05-21

Issue: 03

Pages: 12