Prime Money-Market Funds Are Under Pressure. Could They Disappear?

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What would happen if prime money-market funds vanished? The $4.8 trillion money-market fund industry is a safe, sleepy corner of the asset management industry, until there’s a problem—and then it’s a crisis. So as improbable as it seems, a recent JPMorgan Chase report dove into the possibility that prime money-market funds might simply go away.

Prime money-market funds, which have $1 trillion in assets, were changed significantly by regulations addressing problems from the financial crisis. For instance, institutional prime…