Insights

 
 
Regulatory
European Money Market Fund Reform Approved
 
On December 7, 2016, the Permanent Representatives Committee approved, on behalf of the Council of the European Union, an agreement with the European Parliament on money market funds.
Regulatory
The Debt Ceiling and Money Market Funds
 
Since March 15, 2017, the U.S. Government has been using extraordinary measures to remain under the debt ceiling. Recent estimates are that these measures are likely to be exhausted in the beginning of October. Learn how our money market funds are positioned in light of this possibility.
 
 
 
 

Market Insight

Key Takeaways from the Fed’s Rate Rise 

Dec 15, 2017 

Following their December meeting, the U.S. Federal Open Market Committee gave market-friendly answers to several key questions.
 
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Regulatory

European Money Market Fund Reform Approved 

Dec 14, 2017 

On December 7, 2016, the Permanent Representatives Committee approved, on behalf of the Council of the European Union, an agreement with the European Parliament on money market funds.
 
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MARKET INSIGHTS

Strong Economic Data Continues Ahead of the December FOMC Meeting 

Nov 30, 2017 

In November, U.S. GDP was revised upward, while the Bank of England raised interest rates for the first time in ten years and members of the central bank in the Eurozone maintained a positive economic outlook.
 
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Investment Idea

Ultra-Short Bond Funds Redefined 

Nov 30, 2017 

 
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MARKET INSIGHTS

U.S. and U.K. on Path for Near-Term Rate Hikes 

Oct 31, 2017 

The Federal Open Market Committee and European Central Bank policy continued to diverge in October.
 
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Market Insights

Central Banks Keep Rates on Hold While Geopolitical Uncertainty Persists 

Sep 30, 2017 

During September, the U.S. faced increased concerns stemming from several major hurricanes, the debt ceiling, and continued geopolitical uncertainty.
 
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Regulatory

The Debt Ceiling and Money Market Funds  

Sep 14, 2017 

Since March 15, 2017, the U.S. Government has been using extraordinary measures to remain under the debt ceiling. Recent estimates are that these measures are likely to be exhausted in the beginning of October. Learn how our money market funds are positioned in light of this possibility.
 
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Regulatory

Basel III: Overview 

Sep 06, 2017 

Originally released in 2010, Basel III focuses on preparing for bank runs and market stress while working primarily alongside Basel I and II rather than superseding those reforms.
 
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Regulatory

Basel III: Impact on the Money Markets 

Sep 06, 2017 

Basel III—a set of comprehensive reform measures aimed at strengthening the regulation, supervision, and risk management of the banking sector—is having a profound impact on the way banks view capital and deposits from investors. The new regulations are being implemented gradually by 2019, but the effects of the provisions are already being felt in the market as banks have started to adapt their behavior in line with the new rules.
 
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Market Insights

Markets Steady Amid Political Uncertainty 

Aug 31, 2017 

During August, the markets remained steady despite political uncertainty both in the U.S. and abroad.
 
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Education

Repurchase Agreement Primer  

Aug 24, 2017 

A repurchase agreement (also known as a repo) is a sale of securities coupled with an agreement to repurchase the securities at a specified price on a later date. It is similar to a secured loan – the cash lender loans cash to a borrower and receives the borrower's securities as collateral.
 
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Education

Variable Rate Demand Obligations (VRDOs) 

Aug 24, 2017 

VRDOs (also known as VRDNs) are debt instruments that generally allow issuers to receive financing at short-term rates when borrowing long-term. Making up approximately three-quarters of the total U.S. municipal money market, VRDOs can be a vital tool for municipal bond issuers seeking to diversify their debt structure and take advantage of the natural demand from tax-exempt money market funds.
 
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Market Insights

Rates Kept on Hold as Central Banks Meet in July 

Jul 31, 2017 

In July, the ECB and the FOMC kept interest rates steady amid mixed economic data.
 
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Market Insights

FOMC Raises Interest Rates by 25 Basis Points 

Jun 30, 2017 

As global political uncertainty persisted in June, investors shifted their focus to central bank meetings in the U.S., EU, and the U.K.
 
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Market Insights

Fed Maintains Positive Outlook Despite Economic Slowdown 

May 31, 2017 

In its May meeting, the FOMC voted to keep interest rates unchanged, which was largely expected by the markets.
 
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Market Insights

Market Remains Steady Amidst Uncertainty 

Apr 30, 2017 

In the U.S., investors focused on the minutes that were released from the March FOMC meeting. Uncertainty still remained around President Trump’s ability to deliver on his plans to spur economic growth, the potential U.S. Government shutdown and the French election.
 
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Market Insights

Market Embraces Rising Rates 

Mar 31, 2017 

The FOMC raised interest rates for the third time since the 2008 financial crisis, which confirmed the Fed’s positive outlook on the economy and increased the current target interest rate range to between 75 and 100 bps. Fed Chair Janet Yellen cited growing confidence in the economy and markets generally reacted positively to the rate hike.
 
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Market Insights

Strong Month for Global Markets 

Feb 28, 2017 

February was a strong month for global markets as strong global economic data, hawkish comments from the Fed and continued positive performance from U.S. credit markets continued to encourage investors.
 
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Market Insights

Markets Driven by FOMC Meeting 

Dec 31, 2016 

Markets were largely driven by the FOMC’s meeting and the ECB announced a nine-month extension of its asset purchase program but scaled back on the amount of assets that the central bank will buy on a monthly basis.
 
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STABLE NAV FUNDS

You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Funds’ sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

 

FLOATING NAV FUNDS

You could lose money by investing in the Fund. Because the share price of the Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. The Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Funds’ sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

Please consider the investment objectives, risks, charges and expenses of the portfolios carefully before investing. The prospectus contains this and other information about the portfolios. To obtain a prospectus, download one atwww.morganstanley.com/liquidity or call 1.800.236.0992. Please read the prospectus carefully before investing.

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Please be aware that liquidity instruments may be subject to certain additional risks. Fixed-income securities are subject to the ability of an issuer to make timely principal and interest payments (credit risk), changes in interest rates (interest-rate risk), the creditworthiness of the issuer and general market liquidity (market risk). In the current rising interest-rate environment, bond prices may fall and may result in periods of volatility and increased portfolio redemptions. Longer-term securities may be more sensitive to interest rate changes. In a declining interest-rate environment, the portfolio may generate less income.

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