money-market fund

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money-market fund,

type of mutual fundmutual fund,
in finance, investment company or trust that has a very fluid capital stock. It is unique in that at any time it can sell or redeem any of its outstanding shares at net asset value (i.e.
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 that invests in high-yielding, short-term money-market instruments, such as U.S. government securities, commercial papercommercial paper,
type of short-term negotiable instrument, usually an unsecured promissory note, that calls for the payment of money at a specified date. Because it is not backed by collateral, commercial paper is usually issued by major firms whose credit-rating is so good
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, and certificates of deposit. Returns of money-market funds usually parallel the movement of short-term interest rates. Some funds buy only U.S. government securities, such as Treasury bills, while general-purpose funds invest in various types of short-term paper. They became enormously popular with investors in the early 1980s because of their high yields, relative safety, and high liquidity. Investment in money-market funds soared from $20 billion in the late 1970s to over $150 billion in the early 1980s. Much of the growth came at the expense of banks and thrift institutions. With the recession of the late 1980s and early 1990s, interest rates (and, temporarily, the popularity of the funds) dropped. By 2008, some $3.5 trillion was invested in U.S. money-market funds when concerns about real and potential investment losses as a result of the global financial crisis led to sizable withdrawals from the funds; as a result, the Treasury dept. temporarily guaranteed the funds against losses.
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Vanguard has managed money funds for 40 years as an integral part of its product lineup, and currently holds more than $174 billion in both taxable and tax-exempt money market funds.
The new regulations requires institutional prime and municipal money funds to use floating net asset values (NAV), instead of the stable NAV of $1.
These developments have added to the discussion in the ongoing debate over whether additional reforms of money fund regulations are necessary, but their effect on the SEC and the FSOC remains unclear.
Many of the facts are clear: Money funds are a $ 2.
Virtually everyone should have at least $4,000 or $5,000 in a money fund," says David Foster, a CPA and fee-only certified financial planner in Cincinnati.
While each money fund emphasizes in its documents that the $1 share value is not guaranteed, fund companies have vigilantly guarded that provision.
Unlike CDs and bank deposit accounts, money funds are not federally insured.
The full impact of Basel III, which requires banks to issue longer-term paper, has yet to play out for the money fund industry.
22 /PRNewswire-FirstCall/ -- AT&T Singapore today announced the contribution of US$20,000 (SG$29,916) to the Straits Times School Pocket Money Fund to support underprivileged children in Singapore.
Building upon the success and rapid growth of its European money fund portal, MyTreasury recently expanded its portal offerings to include U.
WHEN THE RESERVE PRIMARY money fund broke the buck in 2008 following Lehman's collapse, it was a watershed, signaling that treasurers should look more closely at the holdings of their money funds.
We are taking this step to provide an additional layer of re-assurance for our money fund shareholders during this difficult period," noted Edward Bernard, Vice Chairman of T.