Money Market Fund Breaks a buck

[ejman]

Now this is kind of interesting...



"<IMG class=pixelTracking height=1 width=1 border=0>RFIXX) , a $64 billion fund managed by money market fund inventor The Reserve, said late Tuesday that its $785 million holding of Lehman Brothers Holdings debt has been valued at zero.
As of 4 p.m., the value of the fund's share was 97 cents. The Reserve said that redemption requests received before 3 p.m. will be paid out at $1 a share. "

 

[REWahoo]

Now this is kind of interesting...

I'll bet that's not how owners of this MMkt fund are phrasing it:

"One of the first and largest money market funds has put a seven-day freeze on investor redemptions after the net asset value of its shares fell below $1, in a rare instance in the fund industry of what is called "breaking the buck."

Money market fund breaks the buck, freezes redemptions

 

[cute fuzzy bunny]

For what its worth, I just took a fast look at vanguards MM fund holdings and didnt see anything thats rolled over or looks about to roll over or was otherwise icky.