Money Market Funds and LIBOR Update

By October 14, 2016, money market funds must be in compliance with the reformed money market requirements issued in July 2014. The major shift in this reform requires prime and tax-exempt money market funds to be priced at a floating net asset value (NAV), which introduces the possibility of realizing losses or holding securities that have an unrealized loss. Holders of these funds will also be subject to gates and redemption fees. Government money market funds are exempt from the floating NAV requirement as well as from gates and fees.
In this article, we provide an update on how the new requirements are affecting money market funds and LIBOR rates, and look at short-term options for investors seeking money market fund alternatives.  Click to read the full article.