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I’m hearing that a money market fund has “broken the buck.” What does that mean?

April 26, 2017fund hearing I’m mean Money Market

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I’m hearing that a money market fund has “broken the buck.” What does that mean?

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A money market fund “breaks the buck” when it is unable to repay its $1.00 NAV per share. On September 16, a money market fund announced that its NAV that day was 97 cents, due to a sharp writedown in some securities the fund held. In addition, in 1994, a small institutional money fund “broke the buck”; investors received 96 percent of their principal.