(NYSE:JPM) and the country's top money market fund manager, Fidelity National Financial Inc (NYSE:FNF), which manages $420 billion in money-market fund
Some question whether the regulatory changes will kill off this type of fund--at least the stable or constant net asset value (CNAV) flavor of money-market fund
, which maintains a constant share price of $1 (or [pounds sterling]1, or [euro]1).
There tends to be a total lack of understanding of what stable value funds are and why you would use a stable value fund versus a money-market fund
, says Dorann Cafaro, a consultant with Cafaro Greenleaf LLC in Little Silver, New Jersey.
It is absolutely critical to understand that today's 8 percent fixed income instrument is much more risky than an 8 percent money-market fund
several years ago.
A key benefit is that it allows clients to park their dollars in a money-market fund
with added interest instead of a low-interest or even a noninterest-bearing savings or checking account.
TMB Asset Management Company Limited manages the two money-market funds
Rule 2a-7 of the Act specifically addresses the regulation of MMMFs and "governs the maturity length, credit quality and diversity of debt that money-market funds
can hold." See Daniel E.
Check out Time to Consider Alternatives to Money-Market Funds
Piwowar said other agencies including the Federal Reserve have used to the Financial Stability Oversight Council to influence rules for money-market funds
and potentially righter regulations of asset managers.
Unlike privately operated money-market funds
, fund managers are assuming state-owned banks will not be harmed.
"Faced with a dearth of high-quality, short-term liquid investments in which to invest and low yields, some money-market funds
are moving into longer-duration instruments, boosting their risk." So writes the Wall Street Journal.