Is Your Money Market Fund Still Safely Pegged to $1.00?
There are a lot of good articles around about money market funds possibly losing their peg to 1.00 dollar mark. Fellow blogger Rob from Qunatifiable Edges wrote about how his IRA is frozen due to his cash being affected by the 3% drop in the Reserve Primary Fund. One of the New York Times’ articles, ‘Money Market Fund Says Customers Could Lose Money‘, explains why Rob’s account is frozen:
The fund’s financial records also show that more than half of its portfolio on May 31 consisted of asset-backed commercial paper and notes from a host of issuers besides Lehman, few of them names likely to be familiar to the financial markets.
If …
tagged: Money Market Funds
