Skip to:

Text size [+][-]  Tuesday February 9 2010GLOBAL EDITION

Considered view
18 Dec 2008 20:38

The cut that guts

Context News

The average seven-day interest rate on taxable money market funds is 0.88% according to Imoneynet, a research group that covers the sector.

The Fed’s move to near-zero interest rates will make it hard for money funds to earn enough to cover expenses. And investors may switch to higher-yielding alternatives such as bank deposits. Japan’s experience suggests this could cause problems for corporate borrowers.

Sign up to read the rest of this subscriber-only content, or if you are already a member please sign in here.

Forgotten your password? Get a password reminder.


This Views Flash will shortly be followed by a Considered View


More stories by:  Robert Cyran






Share