{"id":1674,"date":"2008-01-11T00:27:41","date_gmt":"2008-01-11T04:27:41","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=1674"},"modified":"2008-01-11T00:27:41","modified_gmt":"2008-01-11T04:27:41","slug":"opinion-a-collateral-proposal","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=1674","title":{"rendered":"Opinion: A Collateral Proposal"},"content":{"rendered":"<p>In practice, banks guarantee the credit quality of the Money Market Funds they sponsor. This guarantee should be reflected when computing their capital ratios.<\/p>\n<p>Look for the opinion link!<\/p>\n<div align=\"center\"><a href=\"http:\/\/www.himivest.com\/media\/advisor_0712.pdf\"><img decoding=\"async\" src=\"http:\/\/www.prefblog.com\/images\/ad_Collateral.jpg\" \/><\/a><\/div>\n<p><b>Update, 2008-9-18<\/b>: After Reserve Primary Fund broke the buck on <a href=\"http:\/\/www.prefblog.com\/?p=3020\">September 16<\/a>, there were some <a href=\"http:\/\/www.bloomberg.com\/apps\/news?pid=20601213&#038;sid=adYo7YYWQqbU&#038;refer=home\">avowals of credit support from sponsors<\/a>:<\/p>\n<blockquote><p> Bank of America Corp. and Federated Investors Inc. disclosed their most recent holdings and pledged to protect investors after the $3.45 trillion money-market fund industry was jolted by its first loss in 14 years.<\/p>\n<p>As U.S. stocks fell 4.7 percent for the second time in three days, money-fund managers said yesterday they will commit capital to offset any investment losses they incur. They sought to calm investors after Reserve Primary, the nation&#8217;s oldest money fund, did what no competitor had done since 1994 &#8212; allow its net asset value to fall below $1 a share, or break the buck.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>In practice, banks guarantee the credit quality of the Money Market Funds they sponsor. This guarantee should be reflected when computing their capital ratios. Look for the opinion link! Update, 2008-9-18: After Reserve Primary Fund &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[],"class_list":["post-1674","post","type-post","status-publish","format-standard","hentry","category-publications"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1674","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1674"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1674\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1674"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1674"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1674"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}