Money Market Reform: What Does it Mean for Investors?
At the peak of the Financial Crisis in 2008, The Reserve Primary Fund “broke the buck” by reducing its net asset value (NAV) below $1, a consequence of failed short-term loans issued by Lehman Brothers. Panic ensued, the fund lost two thirds of its assets overnight, and it eventually had to liquidate. In response to the panic, the Securities and Exchange Commission (SEC) imposed a series of new regulations beginning in 2010, which were designed to make all money funds more stable and resilient.
Read the full commentary by Brandon Thomas, Chief Investment Officer at Envestnet | PMC, which explains enhanced money market rules beginning October 14, 2016, and implications for retail and institutional investors.
The information, analysis, and opinions expressed herein are for general and educational purposes only. Nothing contained in this report is intended to constitute legal, tax, accounting, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. Information has been obtained from sources believed to be reliable, however, Envestnet | PMC cannot guarantee the accuracy of the information provided. The information, analysis and opinions expressed herein reflect our judgment as of the date of writing and are subject to change at any time without notice.