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Vanguard MM funds participate in Treasury Guarantee Program
Old 10-25-2008, 11:19 AM   #1
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Vanguard MM funds participate in Treasury Guarantee Program

They announced this a week ago (ancient history, I know, but I didn't see it until know and couldn't find any other threads mentioning it).

I have to admit to feeling a little bit unjustifiably annoyed. I moved a bunch of money out of the NJ MM fund, precisely because I had WAYYY too much NJ exposure and because they said they weren't going to participate in the insurance plan. I ditched the MM fund after they made that announcement mostly because I figured everyone else was going to stampede to the exit. Which appears to be the case, given Vanguard's reversal.

On the one hand, I did the right thing by reducing concentrated credit risk in my portfolio. On the other hand, I'm a little miffed at missing out on the extra "moral hazard" returns provided by the guarantee.
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Old 10-25-2008, 11:50 AM   #2
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I find it interesting that the yield on their prime money market fund has shot up to 2.7% from 2-2.2% since they signed up for the guarantee program. I wonder if they feel like they can take more risk now that the gummint is guarantying deposits...
47 years old, single, no kids. Exited the job market in 2010 (age 36). Have lived solely off my investments since 2015 (age 41). No pensions.
Current AA: real estate 64% / equities 10% / fixed income 16% / cash 10%
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