Patrick T. Fallon and Bank of America Corp

Bank of America Corp: Rules adopted by regulators last month will require money funds that invest in riskier assets to abandon their traditional $1 share-price floor and disclose daily changes in value. For companies that use the funds like bank accounts, the prospect of prices falling below $1 may prompt them to shift their cash into the shortest-term Treasuries, creating as much as $500 billion of demand in two years, according to Bank of America Corp, according to Bloomberg. Whether investors move into government institutional money-market funds or just buy securities themselves, there will be a large demand for short-dated debt, Jim Lee, head of U.S. derivatives strategy at Royal Bank of Scotland Group Plcs capital markets unit in Stamford , Connecticut , said in a telephone interview on July 28. That will lower yields. Photographer: Patrick T. Fallon/ One of the biggest winners in the push to make money-market funds safer for investors is turning out to be none other than the U.S. government. Boeing Co., the worlds largest maker of planes, and the state of Maryland are already looking to make the switch to avoid the possibility of any potential losses. With the $1.39 trillion U.S. bill market accounting for the smallest share of Treasuries in six decades, the extra demand may help the worlds largest debtor nation contain its own funding costs as the Federal Reserve moves to raise interest rates . (news.financializer.com). As reported in the news.