In the U.S., as in Canada, Money market funds can go below the usual $1 value, as one in the U.S. did in the 2008 crash.
Japan and parts of Europe already have negative interest rates for some time. Negative yields have now reached America's shores. Well, sort of. The rate on one-month U.S. Treasury bills dropped as low as minus 0.089% on 3/18/2020, and the rate on those maturing in three months sank to minus 0.0178%, data compiled by Bloomberg show. We have never seen these negative rates in the U.S., and this can affect savers since most money market funds, and savings accounts somewhat mirror these rates.
In the U.S. They can suspend redemptions and can impose “fees and gates” and are not insured. On March 18th the U.S. Federal Reserve rolled out its third emergency credit program aimed at keeping the $3.8 trillion money market fund industry functioning if investors make rapid withdrawals. Under the program, the Fed does not insure – but will make loans to money market funds if they are facing a cash crunch.
Taking out cash to hide under your pillow, might have a short-term virus risk. Banks in China are disinfecting cash before issuing to the public. The US Fed is holding cash coming from Asia and Europe for 10-days as a precautionary measure, up from 5-days previously.
Japan and parts of Europe already have negative interest rates for some time. Negative yields have now reached America's shores. Well, sort of. The rate on one-month U.S. Treasury bills dropped as low as minus 0.089% on 3/18/2020, and the rate on those maturing in three months sank to minus 0.0178%, data compiled by Bloomberg show. We have never seen these negative rates in the U.S., and this can affect savers since most money market funds, and savings accounts somewhat mirror these rates.
In the U.S. They can suspend redemptions and can impose “fees and gates” and are not insured. On March 18th the U.S. Federal Reserve rolled out its third emergency credit program aimed at keeping the $3.8 trillion money market fund industry functioning if investors make rapid withdrawals. Under the program, the Fed does not insure – but will make loans to money market funds if they are facing a cash crunch.
Taking out cash to hide under your pillow, might have a short-term virus risk. Banks in China are disinfecting cash before issuing to the public. The US Fed is holding cash coming from Asia and Europe for 10-days as a precautionary measure, up from 5-days previously.
