Crane Data Subscribers
Fidelity Money Market Fund Moves Into Number One Retail Ranking. Fidelity Money Market Fund, formerly Fidelity Spartan MM, has seen its yield jump over the past week from 5.07% to a current 7-day yield (annualized) of 5.17% and an effective (compound) yield of 5.30%. Its guargantuan companion, the $105 billion Fidelity Cash Reserves, has also seen its yield surge to 5.12%/5.25% (simple/compound). Money market fund yields overall continue to rise in response to the jump in asset-backed commercial paper yields, a higher LIBOR rate (the London Interbank Offered Rate), which is used to price some floating rate securities, and a most volatile money market which is presenting rarely-seen opportunities for the bold and the swift. In the past week, our Crane 100 Money Fund Index has risen 13 basis points, from 4.94% to 5.07%. Note also that the top institutional money funds now all offer yields over 5.5%.
