A Study of the Performance of Money Market Funds and the Short-Term Funding Markets During March 2020

ICI Roundtable Examines Liquidity Crisis of March 2020

Regulators in the United States and around the world have advocated for money market fund reform in recent months, expressing the view that money market funds were primary contributors to the extreme market stress in March 2020. At an ICI roundtable, “A Study of the Performance of Money Market Funds and the Short-Term Funding Markets During March 2020,” on April 29, 2021, money market fund managers from eight ICI member firms detailed the events of March 2020, including the challenges they faced and the decisions they made.

Any regulatory action in response to the COVID-19 liquidity crisis should take into account the true drivers of the March 2020 events and should be pursued with a well-informed, evidence-based approach.

Summary of Proceedings and Key Points (pdf)

ICI MMF Roundtable: Answers to Participant Questions (pdf)

ICI Presenters

• Sean Collins, ICI chief economist
• Shelly Antoniewicz, ICI senior director of industry and financial analysis

Moderator

• Professor Erik Sirri, Babson College

Additional Resources

• ICI Viewpoints: On Closer Look, a Very Different Picture of Funds’ Role in the Commercial Paper Market
• ICI Viewpoints: Previous Reform Made Prime Funds Less Resilient This Time Around
• Experiences of US Money Market Funds During the COVID-19 Crisis (pdf)
• ICI Responds to the President’s Working Group Report on Potential Options for Money Market Fund Reforms