Large money managers, though, argue that reforms would be too costly. Fund providers have also tried to delay reforms by offering greater transparency into their operations.
“If the goal is to reduce runs on money market funds, a floating NAV won’t accomplish that,” Jerry Klein, managing director of HighTower, said in the article. “The NAV barely moves anyway. A stable NAV actually creates market stability. A better solution is more transparency which is already happening. We’ve seen Goldman and BlackRock voluntarily disclose their mark to market (market place value) NAV every day.”
Alternatively, investors have taken a look at short-duration bond ETFs, including PIMCO Enhanced Short Maturity Strategy (NYSEArca: MINT), SPDR Barclays 1-3 Month T-Bill (NYSEArca: BIL), iShares Barclays Short Treasury Bond (NYSEArca: SHV) and Guggenheim Enhanced Short Duration Bond (NYSEArca: GSY). [SEC Money Market Fund Reform Drives Interest in Short-Term Bond ETFs]
For more information on the money markets, visit our money markets category.
Max Chen contributed to this article.