Money Markets No Longer “Safe”
The government may have announced that they’re insuring money market investments, but what happens when the yield turns negative?
Record-low yields on government debt have already led money-market funds to waive fees to keep returns positive. If the Federal Open Markets Committee, as expected, cuts its target rate, some Treasury funds may allow returns to turn negative, said Peter Crane, president of Crane Data LLC, a money-fund research firm in Westborough, Massachusetts.
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