During the Great Recession, a few money market mutual funds did the unthinkable. They “broke the buck.” The funds owned debt tied to Lehman Brothers, and when that debt soured, the fund companies weren’t able to keep the net asset value of shares at $1. People freaked out, and the SEC has been mulling regulation ever since. Well, it’s finally here. And the safe, bank-account-like funds which many investors use to park cash while waiting for opportunities are going now be forced to “float” their NAV just like any other mutual fund. Here’s Matt Levine at Bloomberg View with the run-down on how money market funds are changing for some.
FT Alphaville (Brian Reid): Money Market funds are hardly a “systemic risk” threat. Stop the two-tiered regulation.
Gannett/Asbury Park Press (John Waggoner): Money Market funds aren’t supposed to be exciting. The changes could be quite onerous.
Time (Jacob Davidson): Do you even really need a money market fund anymore? Seriously. They are currently paying around 0.01% in interest.
Dr. Ed’s Blog (Ed Yardeni): The BRICs are on fire!! Well, just the B, I & C. Russia is another story.
Macro Business (Staff): China just keeps on building. And building. And building some more.
Points & Figures (Jeffrey Carter): So is there inflation or not? My portfolio is dying to know!
Bloomberg (Megan Durisin): Your hamburger seems to think there is a wee bit of inflation at hand. Beef prices are at all-time highs.
Vox (Danielle Kurtzleben): Can better bus routes help the economy? Fighting poverty with logistics.