When does the Treasurys Temporary Guarantee Program for money market funds expire? Should I get out now?
The guarantee, if the fund is a participant, expires April 30 2009 with a potential extension to September 18 2009. The guarantee only applies to money in participating funds as of September 19 2008. So it doesn’t apply to any money you added after that. The Reserve Primary Fund, which “broke the buck” last year, apparently got more aggressive in its investments after Bruce Bent’s sons took over the company and started buying high-yield commercial paper, something Bruce Bent himself had rallied against (see WSJ article), and ended up with holdings in Lehman Brothers. Other funds that were also aggressive got into trouble as well. “Prime” money market funds invest in commercial paper, but aren’t always that aggressive. No funds have broken the buck recently, so hopefully only the stronger, more conservative money market funds remain. Given all the scrutiny, funds are also more likely to provide better disclosure than what the Reserve Primary Fund provided. Many companies that participat
Related Questions
- How does an investor sign up to participate in the Treasury’s Temporary Guarantee Program for Money Market Funds?
- When does the Treasurys Temporary Guarantee Program for money market funds expire? Should I get out now?
- What has happened to the U.S. Treasury Temporary Guarantee Program for Money Market Funds?
