The Wall Street Journal's
Daisy Maxey reports that advisors are wary of riskier money funds, at least until the Fed raises the federal funds rate. Money market fund assets have fallen by nearly $1 trillion since the Reserve fund debacle in 2008.
Maxey interviewed Andy Kapyrin
, director of research at RegentAtlantic Capital
, whom she quoted as saying, "What happened in September of 2008 with the Reserve [Primary] Fund made a lot of people look at money-markets very differently…Investors want these to be like cash, for liquid purposes…It's not money that's meant to be at risk."
Maxey ask spoke to Peter Crane, president of Crane Data
, who said the drop in assets has more to do with the drop in interest rates than concerns over money-market fund risks.
To read more, click here here
Stay ahead of the news ... Sign up for our email alerts now