It appears that no permanent reputation damage has been done in the wake of the money market fund mess that began two weeks ago, as assets are on the rebound.
Last Monday, the funds added $1.5 billion; on Tuesday, they added $26.2 billion; on Wednesday, they added $19.6 billion, reports Erin Kello for Mutual Fund Wire.
On Sept. 17, nerves were rattled when the Reserve Primary Fund “broke the buck” because of exposure to Lehman Brothers. The last fund to break the buck was the Community Bankers Mutual Fund in Denver in 1994. Money markets are considered the safest investments after cash, treasuries and bank deposits.
Year-to-date, assets in the funds are up by $178 billion, or 8.1%.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.