have any of you moved your money out of money market funds recently? Anybody else concerned about their money markets breaking the buck?
Most are federally insured for at least a year right?
i think the option of insurance is open to MMs that are already in existence. I believe it is up to each fund if it wants to participate in the govt insurance(and i believe there is a slight premium for it). I dont think it is just blanket free coverage(you would think that would entice companies to stretch the yield and entice assets). Could be wrong though.
you’re right, but my MM (VMMXX ) isn’t participating.
No, I think you are right tvPM. I think there is a fee. I think there are some restrictions on the underlying investments. Not every MM can pay the fee and be safe. Edit: crossed posts
This is the note that I found in my vanguard mm account… Treasury guaranty program for money market funds On Friday, the U.S. Department of Treasury announced a planto temporarily guarantee the account values of money market funds (taxable and tax-exempt) as of the close of business September 19. Important details—including program participation fees—have yet to be determined. As of today, Vanguard has not decided whether any of our money market funds will participate. We will continue to monitor the details of the program as they become available. A word on Vanguard money market funds The recent bankruptcy filing by Lehman Brothers Holdings Inc. and widespread turbulence in the financial markets have prompted a number of questions about the impact on Vanguard funds, including money market funds. Vanguard is confident in the stability of its money market funds, all of which are managed with the objective of maintaining a stable net asset value of $1 a share. Learn more» · Despite the recent market turmoil, Vanguard remains confident in the credit quality and liquidity of our money market funds. Your assets continue to be invested with prudence, emphasizing quality, diversification, and liquidity. And thanks to our expense ratio advantage relative to many other funds, our money market funds emphasize holding very high-quality securities while still providing a highly competitive yield.
Can someone pls make sense of this for me? I feel like an idiot bc I just looked up the yield for my MM sweep fund and these are the current #'s. It compounds daily and I just cannot make sense of them. How do I interpret this? 1 Day____1 Day_____7 Day_____7 Day_____30 Day_____30 Day Current __Effective___Current___Effective___Current_____Effective 4.02(%)__4.11(%)___3.59(%)___3.66(%)___1.52(%)_____1.53(%)
I don’t worry at all about my money market funds (Vanguard and Fidelity). If they have problems, how bad could it really be? I think losing 5% in one is a 1/100000 probability event.
Yeah, could someone please explain why the Vanguard Prime Money Market is yielding 2.24% versus the Vanguard Tax Exempt Money Market Fund yielding 4.46%??? I really don’t understand this.
the #'s I posted are for tax exempt as well.