Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Two Money Funds Get Rescued While a Third Dips Not Rated 0.0 Email Routing List Email & Route  Print Print
Tuesday, March 24, 2020

Two Money Funds Get Rescued While a Third Dips

News summary by MFWire's editors

One giant bank bailed out a pair of money funds, while another giant bank saw one of its funds' shadow NAVs dip below $1.

Sheila H. Patel
Goldman Sachs Asset Management
Chairman
Last week, Goldman Sachs injected $1.45 billion into its GS Financial Square Money Market Fund and $391 million into its GS Financial Square Prime Obligations Fund to boost the funds' liquidity, Reuters reports. The move comes amid continued market volatility and the ongoing coronavirus crisis, and after the Fed launched a money fund support program last week.

Meanwhile, also last week, the BNY Mellon team saw their New Jersey municipal money market fund's shadow NAV dip below $1, Reuters reports. Yet Reuters later clarified that, despite the disclosed shadow NAV dipping to $0.9968, the $51-million-AUM fund's official NAV was still $1. (The wire service's initial piece did not mention shadow NAV.)

(Money market mutual funds' NAVs typically stay at $1 or increases, but doesn't slip; however, their shadow NAVs do fluctuate. As long as a fund's shadow NAV doesn't dip more than half a penny, the fund's official NAV remains unchanged.)

Also last week, the Northern Trust team saw their Northern Prime Obligations Portfolio's twice suffer a drop a liquidity drop to 27 percent of AUM, below the key regulatory threshold of 30 percent, Reuters reports. Yet the fund's liquidity level bounced back to 41 percent after the Fed's move last week, the wire service notes.

Editor's Note: A prior version of this story conflated the BNY money fund's shadow NAV with its official NAV. The fund did not break the buck, as its official NAV did not dip below $1. 

Edited by: Neil Anderson, Managing Editor


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use