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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The stability of fund share prices may be further protected by the introduction of private money fund insurance by Fidelity Investments, ICI Mutual Insurance Company, and others.
The combination of money fund reforms and the liquidity coverage ratio is resulting in a cash crunch for corporate liquidity accounts.
BANKING AND CREDIT NEWS-January 28, 2013--US money funds reduce eurozone bank exposure(C)2013 M2 COMMUNICATIONS http://www.m2.com
Money funds in France use that model, and with more than $530 billion under management at the end of 2011, France's money fund industry is larger than that of any other country aside from the U.S.
The Straits Times School Pocket Money Fund has been initiated by the Straits Times to heighten public awareness of the plight of children from low-income families who are attending school without breakfast or pocket money to sustain their day in school.
Source: IBC's Money Fund Report Top-Yielding Certificates of Deposit Annual Min.
Downward adjustments in returns on deposits and retail money fund shares had lagged declines in market interest rates in recent months, and investors evidently responded by shifting funds from market instruments into these M2 assets.
The rate rise may also afford money fund managers, and other service providers, the opportunity to increase fees and, assuming an unchanged cost base, increase the profitability of their money market fund businesses.
Meanwhile, Crane reported the 7-day net yield on its 100 Money Fund index rose 5 bps to 1.61%, while its Prime Institutional index was up 4 bps to 1.68%, with the Treasury Institutional index up 7 bps to 1.48%.
Separately managed accounts did score high when respondents were asked about the options they are considering in light of the coming changes in money fund regulations.
Money Fund Exposure and European Banks: Eurozone Rise Continues' is available at'www.fitchratings.com.
The football-themed motor racing championship, with a weekend prize money fund of one million euros, promised to "bring together the international passion of club football with the speed and excitement of top-level international motorsport", and SF President Alex Andreu admitted afterwards that the weekend had gone "much better than we could have expected".