• A fund must keep at least 10% of its portfolio liquidity overnight and 30% within seven days. Treasury securities and certain other government securities qualify as liquid assets.
• The allowable bucket for illiquid securities is reduced to 5% of the portfolio from 10%.
• Investments in securities rated second tier are reduced to 3% of the portfolio from 5%. Exposure to a single issuer is reduced to 0.5% from 1%.
• The maximum weighted average maturity is reduced to 60 days from 90 days. The maximum WAL is 120 days.
• Collateral of repos qualified for look-through treatment must be cash items or government securities.
Source: Capital Advisors
see also:
Money markets: Investors get rich from banks’ seven-day itch
Extendibles face extinction
