U.S. money market funds continued reducing their holdings of asset-backed commercial paper and banks in certain European countries, while boosting their repurchase agreement allocations in the fourth quarter, according to Fitch Ratings. In noting the ongoing trend, Fitch noted that repos accounted for 21% of total U.S. prime institutional money market funds, up fro 19% in the third quarter and above the annual average of 17%. The credit rating agency also said that the funds reduced their exposure to Spanish banks, for example, to 1.4% of total assets, compared to 2.1% in the third quarter and 3.1% a year earlier.
