3 replies to this topic

[NAV]

There were a lot of discussions last week as to how ensure that your money market funds are not invested in anything less pristine than U.S govt securities, much less some mortage junk. Now for the regular money market savings acocunts, it easy to move the money to more secure funds. But what about other accounts like your stock brokerage accounts or the company 401(k) , which invests cash balances in non-U.S treasury instruments ? It's tough to force a 401(k) administrator in a company to change the MM fund. Being self-employed, this is not an issue for me. It's tough to force your stock brokerage guys to change the MM funds they are using and changing the broker may not be a good option in many cases, for it could end up as jumping from firepan into fire. Do you folks happen to know what instruments IB and Tradestation (have accounts with both) specifically invest their cash balances in ? I am not too worried at this stage of business cycle, cuz one or two companies going belly up should be easily covered by the FDIC or the SPIC. It's only when the epidemic spreads, you have to start worrying about the viability of the insurers themselves. But that comes in the late stage of the business cycle. In any case, it was an eyeopener for me when JNavin posted that Fed is conducting open market operations by buying MBS and not U.S treasuries. Not a comforting thought. Thanks for any info...

Edited by NAV, 11 August 2007 - 01:00 AM.

[spoo tooth]

Interactive....holds in treasury bills Tradestation...????????

[traderpaul]

There were a lot of discussions last week as to how ensure that your money market funds are not invested in anything less pristine than U.S govt securities, much less some mortage junk. Now for the regular money market savings acocunts, it easy to move the money to more secure funds. But what about other accounts like your stock brokerage accounts or the company 401(k) , which invests cash balances in non-U.S treasury instruments ?

It's tough to force a 401(k) administrator in a company to change the MM fund. Being self-employed, this is not an issue for me. It's tough to force your stock brokerage guys to change the MM funds they are using and changing the broker may not be a good option in many cases, for it could end up as jumping from firepan into fire. Do you folks happen to know what instruments IB and Tradestation (have accounts with both) specifically invest their cash balances in ?

I am not too worried at this stage of business cycle, cuz one or two companies going belly up should be easily covered by the FDIC or the SPIC. It's only when the epidemic spreads, you have to start worrying about the viability of the insurers themselves. But that comes in the late stage of the business cycle. In any case, it was an eyeopener for me when JNavin posted that Fed is conducting open market operations by buying MBS and not U.S treasuries. Not a comforting thought.

Thanks for any info...

Nav, Do you know if the bank going belly up.....FDIC will come in and you do not get you money in lum sum?.....You will get paid 1/10 of your money per year for 10 years with NO interest.....How about the mony market fund....They do not have to pay you $1 a share.....

[NAV]

Nav, Do you know if the bank going belly up.....FDIC will come in and you do not get you money in lum sum?.....You will get paid 1/10 of your money per year for 10 years with NO interest.

Ah, i did not know that. At least that will take of my bread every year. Don't have to stand in the breadline