Treasury Management Internation Logo

Fitch Ratings 2019 Outlook: Global Money Market Funds

Published 

London – Fitch Ratings expects ratings to remain stable across its portfolio of global money market funds (MMFs) in 2019. European money fund reform will reach completion in 2019, regulatory intervention will likely persist in China where assets have seen significant growth, and U.S. MMFs, having adjusted to 2016 reforms, could benefit from rising rates and the return of foreign cash.

While the European reforms will bring about changes in the form of new structures and more stringent liquidity and diversification standards, the process has been a gradual one and the transition to the new operating environment is expected to be smooth with a number of managers having already successfully converted to post-reform formats.

The U.S. remains the largest region in terms of money fund assets under management; however, China’s MMF industry has experienced sustained demand hitting record asset levels and is expected to continue to grow throughout 2019. Chinese regulators remain active in tightening policy in order to manage potential liquidity and concentration risks as inflows persist and the industry could possibly adopt certain products and procedures that have been popularized by recent U.S. and European reforms.

While expressively slower than the growth rate seen in China, Fitch anticipates U.S. money funds to continue to attract investors back to the space as yields rise and funds continue to exhibit muted net asset value volatility. U.S. tax reform enacted at the end of 2017 could also lead to additional flows into U.S. funds as corporations bring money back on shore.

Fitch’s Rating Outlook for its global MMF ratings is stable. While structural changes will impact both Europe and China, the conservatism exhibited in rated funds is supportive of ratings stability.

Most recent episodes

HSBC’s Sibos Spotlight: Investing in the Future – from Diversity to Green Deposits

In the final instalment of HSBC’s Sibos Spotlight, Eleanor Hill (TMI) invites Nadine Lagarmitte and Suraj Kalati (HSBC) to consider how corporates’ attitudes to...

25:12

HSBC’s Sibos Spotlight: The ESG Landscape – what every treasurer needs to know

In the third edition of HSBC’s Sibos Spotlight Podcast series, TMI’s Eleanor Hill invites Farnam Bidgoli (HSBC) to provide an in-depth overview of the current ESG...

16:24

The Path to Transformational Global Cash Visibility

Davina Bradley (CEVA Logistics) and Conor Deegan (CashAnalytics) join TMI’s Eleanor Hill to explore how treasurers can transform their cash visibility and forecasting within their business in a matter of weeks using a...

33:16

HSBC’s Sibos Spotlight: Embedding ESG in Trade and Supply Chains

In the second podcast from HSBC’s Sibos Spotlight series, TMI’s Eleanor Hill speaks to Surath Sengupta (HSBC) about embedding ESG into trade and supply chains....

20:58

Lost in Transaction: Overcoming Payments Pitfalls

From simple errors to duplicates, fraud and sanctions violations, there are a number of areas where payments can go wrong – especially in the real-time environment. In this podcast, TMI speaks to Andrew Ferrao...

34:25

HSBC's Sibos Spotlight: Central Bank Digital Currencies

The first edition of HSBC’s Sibos Spotlight series sees TMI’s Eleanor Hill joined by Mark Williamson and James Pomeroy (HSBC) to discuss the hot topic of Central Bank Digital Currencies (CBDCs). Our guests discuss...

25:48

Payments Vision 2025: The Inside Track

Wim Grosemans, Steven Lenaerts (BNP Paribas) and Wim Raymaekers (SWIFT) join TMI’s Eleanor Hill to outline their vision for the payments landscape in 2025. Our guests consider how recent developments such as instant...

28:21

Stepping Out from the Shadows

“Treasurers needs to step out of the shadows and into the sunshine in terms of their strategic contribution.” claims Zitah McMillan, Co-Founder and CEO, Predictive Black. In this podcast, hosted by TMI’s Eleanor Hill, our guest declares that the...

16:54

Why the ‘One Size Fits All’ Approach is Outdated - A Cash Segmentation Treasury Masterclass

With the ongoing low interest-rate environment and increasing regulatory change, it’s more important than ever for treasurers...

23:55

Instant Payments: Instant Rewards

TMI’s Eleanor Hill sits down in the virtual TreasuryCast studio with J.P. Morgan’s Global Head of Real-Time Payments, Cyrus Bhathawalla, to discuss how treasurers can capitalise on the evolving nature of real-time payments. Our guest contemplates the elements...

23:55