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U.S. Calls Out Money Funds Over Wild Market Swings in March (1)

Dec. 22, 2020, 9:51 PM

A high-powered group of U.S. regulators cited money market mutual funds as a key source of stress during March’s pandemic-fueled market turmoil, while making a number of recommendations on how to make the investments more resilient during the next crisis.

The President’s Working Group on Financial Markets pointed to money market funds as significant buyers of assets that experienced distress earlier this year, including Treasuries, commercial paper and short-term municipal securities, according to a report released Tuesday. The group said a top concern is that investors expect the funds to be highly liquid but that’s not always the case when ...