Institutional money funds, also known as institutional prime money market funds, are investment vehicles that are designed to provide investors with a low-risk option for earning a return on their cash investments. They are typically used by institutional investors, such as pension funds, insurance companies, and banks, to manage their short-term cash needs.
Institutional money funds invest in a diversified portfolio of high-quality, short-term debt instruments, such as commercial paper, certificates of deposit, and Treasury bills. They aim to maintain a stable net asset value (NAV) of $1 per share and to provide investors with a relatively low level of volatility and a stable stream of income.
Institutional money funds can have an impact on the stock market in a number of ways. First, they can provide a source of liquidity for the market, as institutional investors may use them to manage their cash needs and to meet redemption requests from investors. In addition, changes in the demand for institutional money funds can affect the supply of cash in the market, which can in turn affect the demand for other assets, such as stocks.
Institutional Money Funds Market Alerts alert you whenever new institutional money funds are released by the Board of Governors of the Federal Reserve System on a weekly basis.
With Stock Alarm you can set new Institutional Money Funds alerts. When your alert triggers you will receive a notification via push notification, email, phone call, or text message.
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