Goldman Sachs Props Own Money-Market Funds After Withdrawals

(Bloomberg) -- Goldman Sachs Group Inc. pumped more than $1 billion into two of its prime money-market portfolios as investors pulled funds during one of Wall Street’s most volatile weeks.

The bank bought $722.4 million in assets from its Goldman Sachs Financial Square Money Market Fund last week and another $301.2 million from its Goldman Sachs Financial Square Prime Obligations Fund, according to two filings with the Securities and Exchange Commission late Friday. Combined net withdrawals exceeded $8 billion.

The purchases increased the funds’ weekly liquid assets to 42% from 34% for the first product, and to 49% from 44% for the latter. As of the market close Friday, the WLA levels were 46% and 50%, respectively.

“These actions underscore our commitment to the GSAM funds providing liquidity to clients focused on the near-term implications of the current market environment,” David Fishman, head of the Liquidity Solutions portfolio management team within Goldman Sachs Asset Management, said in an emailed statement.

Prime money-market funds, which tend to invest in higher-risk assets such as commercial paper, saw outflows of $85.4 billion last week, the largest move since October 2016, according to Investment Company Institute data.

©2020 Bloomberg L.P.

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