http://www.zerohedge.com/news/2016-...ing-cash-out-money-market-funds-and-treasurys
may 1 2016 While perhaps not quite as dramatic (or confusing) as last week's announcement by Scottrade that the discount online broker would no longer allow Canadian citizens to hold accounts, in a new surprising development, another online broker, Charles Schwab has started informing some of its clients that "between June and October 2016, Schwab will update the cash feature on your account(s) from the current retail prime or municipal money market fund sweep to the Schwab Government Money Fund" or the SWGXX, which "will invest at least 99.5% of its total assets in cash, U.S. government securities and/or repurchase agreements that are collateralized fully by cash and/or U.S. government securities; under normal circumstances, at least 80% of the fund's net assets will be invested solely in U.S. government securities including repurchase agreements. "
In other words Schwab is telegraphing that brokerages have begun permanently unwinding hundreds of billions if not trillions in money market-funds, and rotating it almost entirely into government securities.
Recall that according to the punditry, one of the biggest hindrances to NIRP in the US is the trillions of dollars held in money market accounts. Well, one way of overcoming this "problem" is to preemptive begin a mandatory sweep pushing all money market-parked cash into government-linked securities
