Will The Bond Market Meltdown Hurt Cash Plus and Enhanced Cash Funds? Any time any market experiences a downturn, macabre observers and paranoid fiduciaries look for casualties.
The recent short, sharp drop in bond prices is sure to reveal some additional damage, though, of course, money market funds will be unscathed. (
See
The Times Online's "Bond meltdown: how it will hit your investment portfolio".) This got us wondering whether the
nascent, heretofore rapidly growing sector just beyond money market funds -- cash plus, enhanced cash and ultrashort bond funds -- may be adversely impacted. But since most of these funds are "
private placements" or "
3c-7" funds which don'
t have the
daily "mark-to-market" requirements of mutual funds, it may take some time to gauge the impact. We'
ll be watching though....