March 23, 2020 / 2:44 PM / 9 days ago

Goldman pumped $1.8 billion into two funds last week to boost liquidity

BOSTON (Reuters) - Goldman Sachs Group Inc (GS.N) said on Monday it had injected more than $1.8 billion into two of its money-market funds last week, updating a previously disclosed figure of about $1 billion.

The transactions were spread over two days last week to bolster the funds’ weekly liquidity levels. Liquidity in the funds dropped but remained above the U.S. regulatory threshold of 30% of assets, before Goldman’s capital support.

Goldman Sachs Bank bought $1.45 billion in assets from the GS Financial Square Money Market Fund and $391 million from the Financial Square Prime Obligations Fund.

The funds received market value for the assets, which allowed them to boost their liquidity levels amid several billion dollars in net withdrawals by investors.

Before selling assets to the bank, the funds’ weekly liquid assets were 34% for GS FS Money Market Fund and 44% for GS FS Prime Obligations Fund.

As of Friday’s close, weekly liquid assets were 46% in GS FS Money Market and 50% for GS FS Prime Obligations Fund, Goldman said.

Reporting by Tim McLaughlin; Editing by Chizu Nomiyama, Jonathan Oatis and Richard Chang

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