Large US Bank Deposits Plunge, MM Fund Assets Hit New Record Amid Equity Chaos

For the fourth week in a row, money market funds saw inflows (+$21BN) which lifted the total AUM to a new record high of $6.26TN…

Source: Bloomberg

All of which took place as stocks puked hard and recovered.

Bank deposits, on the other hand, were flat the week-ending 8/21 (+$0.9BN on a seasonally-adjusted basis)…

Source: Bloomberg

But, on a non-seasonally-adjusted basis, US banks saw a large $85BN deposit drawdown… the biggest weekly decline since May…

Source: Bloomberg

WTF is a ‘seasonally-adjusted deposit’ anyway?

Excluding foreign deposit flows, this meant US domestic deposits tumbled $94BN last week (NSA)… or – after Fed fuckery – just $11BN (SA)…

Source: Bloomberg

The seasonally-adjusted flows saw small banks add $9BN in deposits while large banks saw $20BN in deposit outflows (as everyone and their pet rabbit piled back into NVDA?) On the other hand, non-seasonally-adjusted, large and small banks saw major deposits runs (-$86BN and -$8BN respectively).

Interestingly, on the other side of the ledger, small bank loan volume shrank (admittedly by just $372MN) as large bank loan volume surged (+$13.5BN) in the week-ending 8/21…

Source: Bloomberg

Finally, as stocks market caps soared back towards record highs this week, bank reserves at The Fed dipped once again…

Source: Bloomberg

That’s quite a divergence!!