Crane Data Subscribers
When choosing money market investments, make sure you're making "apples-to-apples" comparisons. Important factors to note are: date and time period, compounding (or not), net vs. gross (and whether there are other trading costs), and the type of annualization. Money market mutual funds, like all mutual funds, use a calendar 365 day annualization and quote a 7-day current (simple, SEC) yield. But many money market securities, like CP and CDs, continue to use the bank interest convention and annualize using 360 days. (Multiply by 365/360 to normalize.)
