Mr Cooper Group Inc (COOP)

[t1215s]

FYI.Charles Schwab Corp. saw $8.8 billion in net outflows from its prime money market funds this week as investors rattled by turmoil at US banks plowed even more money into the brokerage’s other portfolios that favor assets with government backing.

Clients moved money from two Schwab Value Advantage Money funds, which had a combined $195 billion of assets as of March 15, representing the largest redemptions in at least six months, according to company data compiled by Bloomberg. The data cover the three days through March 15.

Amid wild gyrations in financial markets, the shift in client assets isn’t likely to jeopardize Schwab. The firm’s own government and Treasury funds had inflows in each of the same three days totaling about $14 billion, according to the company’s data.

The shifts represent clients focused on safety who are moving from prime money funds to government money funds – “all within Schwab,” Mike Peterson, a company spokesman, said via email. “Those shifts from one category to the other happen all the time. This one is larger, but is part of a broader industry trend and is not unique to Schwab.”

Wider Trend

The flows at Schwab match the pattern in data from the Investment Company Institute, which show prime fund assets decreased by $18 billion industrywide for the week ending March 15, while total money market fund assets increased by $121 billion.

Ts