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Article: United States: Low Yields Join Credit Worries as Big Issues for Money Funds.
- Article from:
- TendersInfo
- Article date:
- March 7, 2009
CopyrightCOPYRIGHT 2009 Al Bawaba (Middle East) Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Mamta03
When the Reserve Primary Fund collapsed in September, it prompted panic in the world of money-market funds.
Investors pulled more than $200 billion out of money funds within two weeks of the news that the Reserve fund's net asset value fell below $1 a share. All money-market funds strive to keep that value to ensure that investors won't lose any money -- the key to these funds' allure, especially when financial markets are in turmoil. When the Reserve fund "broke the buck," investors feared other money-market funds might suffer the same fate.
Since then, the roughly $4 trillion money-fund industry has stabilized and seen assets ...