FT: BNY Mellon steps in to support money market fund after outflows

BNY Mellon stepped in to support one of its money market funds amid sharp outflows from parts of the sector this week, buying $1.2bn of the fund’s assets so it had cash to help cover redemptions.

The US bank made the liquidity injection as investors withdrew $6bn from the Dreyfus Cash Management fund in the week ending Thursday, around half of its assets, according to Crane Data.

The fund is a “prime” money market fund that invests in short-term corporate debt, including commercial paper and certificates of deposit. Outflows from these funds have heaped pressure on short-term funding markets as concern about coronavirus has grown, sending borrowing costs higher for companies and US municipalities and prompting a series of interventions from the Federal Reserve.

The full article https://www.ft.com/content/8222c5a2-6ad3-11ea-800d-da70cff6e4d3

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