greg_not_so[at]hotmail.com (Greg) writes:

- quote -

(0) No retail MMF has ever "broken a buck".

(1) Ignore risk of default and it won't lose value, absent an
incredible interest rate spike and a simultaneous wave
of redemptions.

(2) Even then, it probably wouldn't lose value, because
the fund manager would likely as a PR move cough up its
own money to offset any loss. They're not required to
do that, though.

(3) That said, a number of retail funds would have had
negative yields in the past year or so (because their
obscenely high expense ratios couldn't be covered by
today's low interest rates) except that again as a
PR move, the fund managers waived enough of the expense
ratio to prevent a negative yield.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

Greg wrote:
- quote -


Primarily only with a week that does NOT have a Tuesday.....
Cal Lester CLU


--
I destroy my enemy by making him my friend

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Just out of curiosity...

If your average money market fund can only invest in short term paper,
when will it lose value? Let's ignore inflation and the risk of
default for a moment.

greg