Money Market Funds & “Breaking the Buck”

Money market funds are back in the spotlight following the US debt downgrade. In the week to Monday August 1, as legislators in Washington struggled to find a compromise that would allow the $14,300bn debt ceiling to be raised, investors withdrew $122bn from money market funds, according to Crane Data, the second largest weekly drawdown since the Reserve Fund broke the buck in 2008.

Focus turns to US money market funds, Financial Times, 7 August 2011.

Reserve Primary Money Fund Falls Below $1 a Share, Bloomberg story from Sep 2008 when the Reserve Fund “broke the buck” – a key milestone in that year’s financial meltdown.