MSNBC: "Credit crisis turns spotlight on money markets: Seemingly safe investments buy commercial paper, but Feds have your back". The article says, "While money market funds are not insured, the Securities and Exchange Commission requires their portfolios be invested only in the highest two grades of securities -- meaning that the commercial paper they own is 'prime.'"
Reuters' Linda Stern writes in today's Washington Post "Parking spaces for your cash". "[R]ecent reports that some of the bad mortgage debt might have found its way into money funds have scared off some people. Not me. I remain convinced that money market funds run by big name investment companies still offer the best combination of yield and security for parking money," she says. Also, today's IBD writes "Could Subprime Sink Money Funds?".
CNNMoney.com on "Debunking money market fears". Money magazine senior editor Walter Updegrave masterfully explains the recent overreaction to minor problems in money market funds. He says, "But when you consider the diversify of investments, the quality standards and the strong incentive for fund companies not to break the buck, I think it's very, very unlikely that individuals would lose money in money market funds today. (The article also mentions and links to http://www.cranedata.us.)
Peter Crane Guest Stars on PBS TV's WealthTrack with Consuelo Mack. Crane Data President & Founder Peter Crane guest starred this weekend on the PBS TV show "WealthTrack with Consuelo Mack". He discussed cash investing and the recent money market turmoil (see video) and advised calm and avoiding outliers. Other guests included David Darst, chief investment strategist of Morgan Stanley and Vern Hayden, president of Hayden Financial Group.
Reuters Says "U.S. money funds seen safe from subprime problems". "Experts are reassuring investors that U.S. money market mutual funds, which have gathered about $165 billion in new assets over an eight-week period, are safe from the subprime mortgage problems that have caused steep losses at several hedge funds," says the piece.
USA Today writes "Commercial paper gets spotlight time". The article says, "Is there a crisis in commercial paper? The market for securities sold by corporations remains healthy, says Peter Crane, president of money fund tracker Crane Data."
New York Times Says "The Fed's Sudden Action Eases a Logjam in Corporate Borrowing. The article quotes Peter Crane, "Investment managers and portfolio managers who deal with hundreds of millions of dollars are very concerned, but the average investor should not be worried.... He said there was almost 'zero chance' that a money market fund would decline significantly in value."
"Money-Market Assets Need Diversity (WSJ)". The Wall Street Journal article discusses recent turmoil, ultra-short bond funds, bank accounts, stable value funds, and checking accounts. The piece adds, "Investors can search for bank money-market and savings accounts at www.bankrate.com or www.cranedata.us."
Bloomberg TV Interviews Peter Crane on Sentinel Management. Crane discusses the differences between money funds and some more aggressively separately managed "cash" accounts. He reaffirms the safety of money funds, saying "Money market mutual funds are in no danger whatsoever".
Money Market Funds Are Safe Says Crane Data's Peter Crane on CNBC. Today, on CNBC's "Power Lunch", Crane Data President Peter Crane tells investors and investment professionals, "There have been no defaults, there has been no 'breaking-of-the-buck'" [declines below $1.00 a share], and there's been no trouble that would impact investors to-date." Crane says only one money market fund has ever dropped below $1.00 a share (Community Bankers U.S. Government Money Market Fund was liquidated at 96 cents on the dollar in 1994). Crane believes that money market mutual funds are in no danger of 'breaking-the-buck' and that asset-backed commercial paper, which represents about 15% of money fund holdings, has many layers of protection. "They often have bank loans, oversubscriptions and additional protections." To see the video, click here.
Peter G. Crane on "Choosing a Money Market Fund?" for GTNews.com. Crane Data LLC founder and president Peter Crane writes today on GTNews.com "Choosing a Money Market Fund: Is Yield the Only Consideration?". The article gives tips on differentiating between money market mutual funds, and mentions recent troubles, saying, "While money market funds may have exposure to mortgage- and collateralised debt obligation- (CDO-) backed asset-backed commercial paper or asset-backed securities (ABS), it is unlikely that any funds will see any losses related to recent market troubles. The odds of a fund 'breaking-the-buck', or dropping below its US$1.00 a share, remain practically nil, given money fund's strict mandates of quality and diversity."