Posts belonging to Category Money Market Funds
Posted by Page PerryonJanuary 6, 2009
Auditors find themselves on the “hot seat” as a result of the SEC’s recent mandate that corporations and other institutional investors report investment holdings based on a “market value” basis. As 2008 came to a close, many companies and institutional investors were hoping that the SEC would suspend the “fair-value” accounting rules that require companies […]
Categories: Auction Rate Securities, Bonds, Brokerage Firms, Market Developments, Money Market Funds, Mortgage Securities & Collateralized Debt Obligation Problems, Regulatory Developments, Smart Investing Tools
Posted by Page PerryonOctober 24, 2008
There have been various developments over the past several weeks which investors may consider relevant in allocating their resources or evaluating alternatives that are available to them. Some of the more significant developments include, but are not limited to, the following: On Monday, the Dow Jones Industrial Average jumped up by 275 points. On Tuesday, […]
Categories: Credit Suisse, Goldman Sachs, Market Developments, Merrill Lynch, Money Market Funds, Smart Investing Tools, Wachovia
Posted by Page PerryonOctober 10, 2008
There have been various developments over the past several weeks which investors may consider relevant in allocating their resources or evaluating alternatives that are available to them. Some of the more significant developments include, but are not limited to, the following: As expected, late last week Congress passed a revised financial bailout bill. On Monday, […]
Categories: Brokerage Firms, Citigroup/Smith Barney, Market Developments, Money Market Funds, Smart Investing Tools, Wachovia, Wells Fargo
Posted by Page PerryonOctober 3, 2008
There have been various developments over the past several weeks which investors may consider relevant in allocating their resources or evaluating alternatives that are available to them. Some of the more significant developments include, but are not limited to, the following: The Bush Administration proposed a $700 billion bailout plan to purchase bad mortgage investments […]
Categories: Bank of America, Bear Stearns, Brokerage Firms, Citigroup/Smith Barney, Deutsche Bank, Goldman Sachs, J. P. Morgan Chase, Market Developments, Money Market Funds, Morgan Stanley, Smart Investing Tools
Posted by Page PerryonSeptember 19, 2008
It’s time for the American people to demand accountability from Wall Street firms that abused the trust of both their clients and the capital markets and from those regulators responsible for overseeing their conduct. The unprecedented bailouts of U.S. financial institutions and their reckless conduct will have a sweeping impact on the U.S. economy and […]
Categories: Bonds, Market Developments, Money Market Funds, Mortgage Securities & Collateralized Debt Obligation Problems, Municipal Bonds, Regulatory Developments
Posted by Page PerryonSeptember 17, 2008
Two noted money market funds, Reserve Primary Fund and Reserve International Liquidity Fund LTD, managed by Reserve Management Corporation, have “broken the buck.” “Breaking the buck” means that investors in a money market fund lose their invested principal. Stated another way, the net asset value of money market fund falls below the $1/share price paid […]
Categories: Bank of America, Brokerage Firms, Charles Schwab, Credit Suisse, Market Developments, Money Market Funds, Morgan Stanley, SunTrust, Wachovia
Posted by Page PerryonJuly 11, 2008
A review of recent market events suggests that there may be far more risk in money market funds than was previously thought. In an article in the Business section of today’s New York Times, Eric Dash reported that, during the last year, many of our country’s largest brokerage firms have been forced to contribute more […]
Categories: Auction Rate Securities, Bank of America, Credit Suisse, Lehman Brothers, Money Market Funds, Morgan Stanley, Mortgage Securities & Collateralized Debt Obligation Problems, SunTrust, Wachovia
Posted by Page PerryonApril 12, 2008
After several months of silence, it is apparent that money market funds aren’t “out of the woods” yet. Some funds still have exposure to investments in structured investment vehicles (“SIVs”) or similar instruments that, in turn, invested in subprime securities. SIVs use short-term borrowing to buy higher-yielding long-term assets. For example, Legg Mason Inc. has […]
Categories: Legg Mason, Money Market Funds, Mortgage Securities & Collateralized Debt Obligation Problems
Posted by Page PerryonMarch 24, 2008
According to analyst Richard Bove, Bank of America may take a $6.5 billion loss provision in the first quarter of 2008. Bove anticipates that this loss provision would be established to cover possible future losses in Bank of America’s subprime mortgage portfolio and home equity portfolio. Recent reports have predicted that both of these segments […]
Categories: Bank of America, Money Market Funds, Mortgage Securities & Collateralized Debt Obligation Problems
Posted by Page PerryonJanuary 21, 2008
An old Wall Street adage says that you should never plan to bring a new offering to market right after a three-day weekend because you never know what could happen from Friday night to Tuesday morning. US markets were closed today for the Martin Luther King, Jr. holiday but it was an event-filled weekend that […]
Categories: Bonds, Market Developments, Money Market Funds, Mortgage Securities & Collateralized Debt Obligation Problems, Municipal Bonds