10 replies to this topic

[SemiBizz]

This may be important. Reading the tea leaves... we all heard about the Money Market Blowup in Europe, now add that info to the Feds only buying Mortgage Backed Securities... I smell a big problem brewing in Money Market Funds. You need to read the fine print in your fund description. Most of us have our trades cashed into money market accounts, my broker invests 25% in "Financial Instruments", I could not get them to deny that some of that is CDO... All they said was that it is all AAA, well so are/were the CDOs. I just moved all my funds out of money market this morning into gov't backed cash reserves...

[OEXCHAOS]

This my standard operating procedure and has been since 1995. ALWAYS use at least Government Money Market funds. The return isn't why you're there, it's the security. You DON'T want to wake up one morning to find your MM fund trading at $0.75 per share. Mark

[traderx]

This may be important. Reading the tea leaves... we all heard about the Money Market Blowup in Europe, now add that info to the Feds only buying Mortgage Backed Securities... I smell a big problem brewing in Money Market Funds. You need to read the fine print in your fund description. Most of us have our trades cashed into money market accounts, my broker invests 25% in "Financial Instruments", I could not get them to deny that some of that is CDO... All they said was that it is all AAA, well so are/were the CDOs. I just moved all my funds out of money market this morning into gov't backed cash reserves...

what are examples of government backed cash reserves?

[Cirrus]

AXA having some problems in one of their funds--trading at 3/4 par.

[OEXCHAOS]

Cirrus, Gotta link on that one? Thanks, Mark

[traderx]

This may be important. Reading the tea leaves... we all heard about the Money Market Blowup in Europe, now add that info to the Feds only buying Mortgage Backed Securities... I smell a big problem brewing in Money Market Funds. You need to read the fine print in your fund description. Most of us have our trades cashed into money market accounts, my broker invests 25% in "Financial Instruments", I could not get them to deny that some of that is CDO... All they said was that it is all AAA, well so are/were the CDOs. I just moved all my funds out of money market this morning into gov't backed cash reserves...

do any etf's (treasury bonds) like SHY fit this category?

[OEXCHAOS]

This may be important. Reading the tea leaves... we all heard about the Money Market Blowup in Europe, now add that info to the Feds only buying Mortgage Backed Securities... I smell a big problem brewing in Money Market Funds. You need to read the fine print in your fund description. Most of us have our trades cashed into money market accounts, my broker invests 25% in "Financial Instruments", I could not get them to deny that some of that is CDO... All they said was that it is all AAA, well so are/were the CDOs. I just moved all my funds out of money market this morning into gov't backed cash reserves...

do any etf's (treasury bonds) like SHY fit this category?

Another breed of cat. But probably not a bad place to be. Check the prospectus, though.

The big worry is just high yielding MM funds. Especially those offered by relatively small out fits. They don't have enough juice to make folks whole in a problem, and they might be dumb enough to be owning commercial paper of somone who might file chapters over this sub-prime mess or due to some counter-party failure.

Mark

[Cirrus]

Mark, No link...CNBC showed the chart of the money market fund and it was trading at 3/4 par at the time. I only have the volume up on CNBC about 1/4 of the time but on days like today I enjoy hearing the pervasive psychology of everyone else.

[dasein]

Im with Schwab and they do not offer a treasury fund to investors with accts under 500K, only for those above. I have been fighting with them for about a few months, becaise I transfered some of my vanguard treasury mm fund to them "in kind" after getting the go ahead from one of their reps. Instead, and against my directions on the transfer, liquidated it instead of letting me hold the fund in my account, saying it was closed to new accounts. klh

[OEXCHAOS]

Don't they have a Govt. Money Market, Karen? Maybe not pure tresuries, but Government backed? That's probably good enough. Mark