Goldman Sachs Group Inc. poured more than $1 billion into two of its prime money-market portfolios this week due to heavy investor withdrawals, according to a filing with the U.S. securities regulator.
The Wall Street bank purchased $722.4 million in assets from its Goldman Sachs Financial Square Money Market Fund and $301.2 million from its Goldman Sachs Fund Square Prime Obligations Fund.
The bank repurchased securities from its two funds on Thursday after investors withdrew a net $8.1 billion from them during a four-day stretch, according to the disclosure.
Industrywide, investors pulled tens of billions of dollars from prime money-market funds, which buy top-rated corporate debt. Although they are among the tamest investment vehicles, they can be riskier than portfolios that rely more on U.S. government bonds.
The recent market panic has been reminiscent of what happened in 2008, when money-market fund problems threatened to freeze up global markets.
The Reserve Primary Fund, which held Lehman Brothers debt, was overwhelmed by investor redemption requests after the investment bank went bankrupt. The fund’s shares fell below $1 apiece, known as “breaking the buck,” and it was forced to liquidate.