Investment News features "Analyst calls rate cuts a foe to money funds". The article says, "Money market mutual funds that invest in Treasuries could cost investors money if the Federal Reserve Bank cuts interest rates further, according to Peter Crane, president of the Westborough, Mass.-based research firm Crane Data LLC. Yields for Treasuries are already less than half a percent and 'if the Fed cuts rates again, you will see [more] firms' giving waivers on fees ... to avoid a negative yield,' he says quotes IN. It adds a quote from Crane, "Negative yield is not akin to 'breaking the buck.' It just means that you are charging more expenses than you are taking in. The investor is paying a fee that is larger than what you are earning. Most firms would waive the fees to avoid paying a negative yield." Also, see Reuters' "Historic low US T-bill rates hammer money funds" and WSJ's "Low Treasury Yields Buffet Money Funds."
