MoneyRates Blog

Safety and Money Market Funds

August 15, 2007
By MoneyRates team | Money-Rates Columnist

Money Market Funds have a long and distinguished history of maintaining a price or NAV (Net Asset Values) of $1 comforting investors that their funds, while not federally insured, are extremely safe. The recent panic in the mortgage-backed securities industry has caused some scrutiny of money market funds and their ability to meet liquidations and [...]

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Ginnie Mae, Fannie Mae, Freddie Mac - Who’s the riskiest?

August 2, 2007
By MoneyRates team | Money-Rates Columnist

A lot of newspaper headlines have covered the topic of the sub-prime mortgage market which has led to more speculation regarding the GSE’s (Ginnie Mae, Freddie Mac, and Fannie Mae) and the risk investors who own these pooled-mortgage securities will feel. First the basics though:
Fannie Mae and Freddie Mac are quasi-private firms chartered by Congress [...]

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Money Funds to the Rescue

July 19, 2007
By MoneyRates team | Money-Rates Columnist

Money funds are mutual funds which invest in short-term debt instruments. So short that the average maturity of the holdings in the average money fund is 90 days or less. The short average weighted maturity of the funds has allowed them to historically maintain a net asset value of $1.00 and the distinction of being [...]

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