Under the new rule, prime institutional money market
funds, which invest in short-term corporate debt, and institutional municipal money market
funds can no longer maintain a constant $1 per share price.
In addition, the new fund may be subject to liquidity gates and/or redemption fees as required by the new money market
Vanguard investors will now have access to two low-cost US government money market
However,] just like in 2008, when the largest money market
fund in the nation 'broke the buck,' due to its holding of Lehman Brothers and some structured investment vehicles [SIVs] associated with distressed mortgages, there's a chance assets in the retail funds can depreciate.
A "retail" money market
fund must have policies and procedures designed to limit all beneficial owners to individuals.
Assets in institutional money market
funds decreased by $360 million to $1.
Institutional: Assets of institutional money market
funds decreased by $32.
The regulator of money market
funds is the Egyptian Financial Supervisory Authority (EFSA), not the Central Bank of Egypt.
funds typically invest in government bills, very short-term bank certificates and other loans that are highly rated liquid which means the assets can be turned into cash quickly - and offer daily redemption.
When Lehman Brothers fell in September 2008, the Reserve Primary Fund's exposure to the bank led the money market
fund to write off $785 million in Lehman debt--and consequently to "break the buck," as its net asset value (NAV) fell below the crucial $1 per share to 97 cents.
savings accounts can offer higher yields than other short-term investments.
Most banks also offer money market
mutual funds that offer competitive rates of return for short-term investment objectives,'' Kozlen said.
In the FSA, the taxpayer was a large commercial bank that served as the investment adviser for a family of proprietary mutual funds, including two money market
funds that the taxpayer had acquired in a merger with another bank.
funds are attracting investors because they practically guarantee your principle, although their interest rates fluctuate according to the overall financial environment.
NEW YORK -- Fitch Ratings affirms the ratings assigned to the following prime and government money market