| US money market funds has been taken as the largest innovation in the history of the development of the mutual funds, and It is an important part of the US mutual fund, the current size has grown to $ 3.5 trillion. Currently, Money market funds are taken as an important source of direct financing for governments, businesses, and financial Institutions, and of indirect financing for households. Without these funds, financing for all these institutions and individuals would be more expensive and less efficient。Today, retail and institutional investors alike rely on them as a low-cost, efficient cash management tool that provides a high degree of liquidity, stability in principal value, and a market-based yield. However, after the wave of money market funds "run" come out during the financial crisis in 2008, investors are aware of the risks of money market and regulators recognize the need to strengthen the supervision of money market funds.This paper adopts a combination of theoretical and practical analysis of research methods. First presented an overview of the US money market funds, US money market funds, the concept of risk, money market funds classification and causes the difference of money market funds and banks etc. Then the reserve primary fund(RPF) collapse case reports, including the primary reserve fund collapse background information, describe the collapse of the process, analyse the primary reason for the collapse of the reserve fund. On this basis, explore the primary reserve fund in the face of large redemptions adopted coping strategies. Also discuss strategies in response to the US government face the primary systemic risk arising from the collapse of the reserve fund. Then discusses the inspiration of the primary reserve fund collapse event. Finally,providing some suggestions for IMF reforms, in order to resolve the risk of money market funds run. In short, money market funds as a major provider of funds in financial markets, stable money market funds is critical to the financial markets. |
