The Federal Reserve released its latest quarterly "Z.1 Financial Accounts of the United States" statistical survey (a.k.a. "Flow of Funds") late last week. Among the 4 tables it includes on money market mutual funds, the First Quarter 2022 edition shows that Total MMF Assets decreased by $115 billion to $5.091 trillion in Q1'22. The Household Sector, by far the largest investor segment with $2.740 trillion, saw the biggest asset decrease in Q1. The second largest segment, Nonfinancial Corporate Businesses, also experienced a drop in assets. The Fed's latest Z.1 numbers, which contain one of the few looks at money fund investor segments available, also shows asset decreases in MMF holdings for the Other Financial Business and Mutual Funds categories in Q1 2022. (Reminder: We're still taking registrations for our upcoming Money Fund Symposium in Minneapolis, Minnesota, June 20-22. See you next week!)

State & Local Governments, Property-Casualty Insurance, Life Insurance Companies, State & Local Govt Retirement and the Rest of the World categories all saw minor asset decreases last quarter. The Private Pension Funds and Nonfinancial Noncorporate Business categories saw small asset increases in Q1, while the Exchange-traded Funds sector remained unchanged. Over the past 12 months, the Other Financial Business, Nonfinancial Noncorporate Business and Private Pension Funds categories showed the biggest asset increases, while Mutual Funds, Household sector and Property-Casualty Insurance saw the biggest asset decreases.

The Fed's "Table L.206," "Money Market Mutual Fund Shares," shows that total assets decreased by $115 billion, or -2.2%, in the first quarter to $5.091 trillion. The largest segment, the Household sector, totals $2.740 trillion, or 53.8% of assets. The Household Sector decreased by $44 billion, or -1.6%, in the quarter. Over the past 12 months through March 31, 2022, Household assets were down $34 billion, or -1.2%.

Nonfinancial Corporate Businesses, the second-largest segment according to the Fed's data series, held $785 billion, or 15.4% of the total. Assets here decreased by $29 billion in the quarter, or -3.5%, and they've increased by $38 billion, or 5.0%, over the past year. Other Financial Business was the third-largest investor segment with $618 billion, or 12.1% of money fund shares. This category dropped $18 billion, or -2.8%, in the latest quarter. Other Financial Business, which we believe includes Securities Lending, has increased by $127 billion, or 25.9%, over the previous 12 months.

The fourth-largest segment (a new addition to the tables), Mutual Funds, held $249 billion (4.9%). Private Pension Funds, was the 5th largest category with 4.9% of money fund assets ($248 billion); it was up by $10 billion (4.1%) for the quarter and up $26 billion, or 11.7% over the last 12 months. The Rest of World remained sixth place in market share among investor segments with 2.7%, or $136 billion, while ` Nonfinancial Noncorporate Business <b:>`_ held $120 billion (2.4%), Life Insurance Companies held $62 billion (1.2%), State & Local Governments held $53 billion (1.0%), Exchange-traded Funds held $39 billion (0.8%), Property-Casualty Insurance held $23 billion (0.5%), and State & Local Govt Retirement held $18 billion (0.4%), according to the Fed's Z.1 breakout.

The Fed's "Flow of Funds" Table L.121 shows "Money Market Mutual Funds" largely invested in "Debt Securities," or Credit Market Instruments, with $2.515 trillion, or 49.3% of the total. Debt securities includes: Open market paper ($233 billion, or 4.6%; we assume this is CP), Treasury securities ($1.759 trillion, or 34.6%), Agency and GSE-backed securities ($403 billion, or 7.9%), Municipal securities ($113 billion, or 2.2%) and Corporate and foreign bonds ($6 billion, or 0.1%).

Other large holdings positions in the Fed's series include Security repurchase agreements ($2.377 trillion, or 46.7% of total assets) and Time and savings deposits ($175 billion, or 3.4%). Money funds also hold minor positions in Miscellaneous assets ($23 billion, or 0.4%) and Foreign deposits ($1 billion, 0.0%). Note: The Fed also lists "Variable Annuity Money Funds," which currently total $39 billion.

During Q1, Debt Securities were down $54 billion. This subtotal included: Open Market Paper (up $7 billion), Treasury Securities (down $55 billion), Agency- and GSE-backed Securities (down $7 billion), Corporate and Foreign Bonds (down $2 billion) and Municipal Securities (up $3 billion). In the first quarter of 2022, Security Repurchase Agreements were down $119 billion, Foreign Deposits were up $1 billion, Time and Savings Deposits were up by $31 billion, and Miscellaneous Assets were down -107.0%.

Over the 12 months through 3/31/22, Debt Securities were down $1.091 trillion, which included Open Market Paper (down $43B), Treasury Securities (down $824B), Agencies (down $213B), Municipal Securities (down $4B), and Corporate and Foreign Bonds (down $8B). Foreign Deposits were down $1B, Time and Savings Deposits were down $40B, Securities repurchase agreements were up $1.182 trillion and Miscellaneous Assets were up $60B.

The L.121 table shows `Stable NAV money market funds with $4,426 billion, or 86.9% of the total (down $160.6 or -3.5% in Q1 and up $128B or 3.0% over 1-year), and Floating NAV money market funds with $665 billion, or 13.1% (up $45.8B or 7.4% in Q1 and down $17B or -2.5% over 1-year). Government money market funds total $4.152 trillion, or 81.6% (down $152.8B or -3.5% in Q1 and up $193B or 4.9% over 1-year), Prime money market funds total $845 billion, or 16.6% (up $37.5B or 4.6% in Q1 and down $69B or -7.6% over 1-year) and Tax-exempt money market funds $95B, or 1.9% (up $0.5B or 0.5% in Q1 and down $14B or -12.5% last year).

Finally, the Federal Reserve made changes to the Z.1 tables last quarter. Describing a "Money market funds sector data source change," the report says, "The money market mutual funds (MMF) sector (tables F.121 and L.121) has been revised beginning 2010:Q4 to reflect a change in data source to Securities and Exchange Commission Form NMFP. The level of assets and shares outstanding of the sector have increased due to the inclusion of private placement MMFs in the source data. Changes in the level due to changes in the data source in 2010:Q4 are recorded as other volume changes in the Financial Accounts."

On "Mutual funds sector holdings of money market funds," Z.1 tells us, "The mutual funds sector (tables F.122 and L.122) has been revised beginning 2010:Q4 to reflect holdings of money market funds not previously reported on the tables. In addition, holdings of repurchase agreements, commercial paper, corporate bonds, and miscellaneous assets have been revised. Additional and revised holdings are estimated using data from Morningstar and Investment Company Institute.... The exchange-traded funds sector (tables F.124 and L.124) has been revised beginning 2010:Q4 to reflect holdings of money market funds not previously reported on the tables."

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