Money market run shuts down a fund
The stock market had a good day since the Dow rose over 400 points, but all is not well in the money market.
The Putnam Prime Money Market Fund announced that it will liquidate the fund after investor withdrawals left the fund unable to redeem shares without suffering losses.
The fund was valued around $12 billion and no details have been released as to when (or how much) shareholders will receive. So, that means the money market mutual fund’s trademark $1.00 NAV is not promised.
In the past three days, investors have withdrawn approximately $228 billion from prime institutional money market funds. A large portion has ended up in government institutional funds, which saw a $47 billion influx on Wednesday.
Putnam’s Prime fund disappeared in record time. Take a look at what happens when you try to get a quote: PPMXX.
Tags: failure, liquidation, money market, prime money market, PutnamRelated Stories
POSTED IN: Corporate, Economy, Investment, Market, News
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