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0 pointsJimboOmega7y ago0 comments

Yeah. But MMFAs can default in ways that aren't guaranteed by the government. The distinction between zero and near zero matters.

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howard9417y ago

This is an important distinction. When the money marketeer redeems a dollar for less than a dollar it "Breaks the Buck" [0]. Cowen's MM account IIRC was the first one to do that back during the 01 crash.

[0] https://www.investopedia.com/terms/b/breaking-the-buck.asp

xxpor7y ago

The rules around breaking the buck were significantly changed after 08. Funds can suspend transactions instead now.

theseatoms7y ago

As if not letting people out is better than letting them out at a haircut. Need to maintain the illusion of safety I suppose.

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