Serving the Quantitative Finance Community
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- abhishek542000
- Posts: 0
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Money Market Funds
What will happen to the money market funds in this environment? Will we see more funds breaking the buck?RegardsAbhishek
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- Traden4Alpha
- Posts: 3300
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Money Market Funds
It's not likely in the U.S. after the Treasury Dept promised to support MMF.
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- Martinghoul
- Posts: 188
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Money Market Funds
What will be interesting is what will happen to the MMFs when/if Fed Funds go to 1%. That might pose quite a challenge.
Money Market Funds
If the Fed Funds rate were to get down to ~0.75 basis points, MMF's would stop paying out interest to fundholders because they won't be able to cover their own expenses at a lower rate.