Run On Money Market Fund: Reserve Primary Fund Lost 60% Of Its Assets To Redemptions This Week

EconomicPolicyJournal.com ^

[Kozman]

The news on redemptions at Reserve Primary is certainly being kept secret. The only reference to it that I have seen was buried in the third paragraph a Bloomberg story.

The Reserve Primary Fund lost more than 60 percent of its assets to redemptions this week, according to Bloomberg. Now that's a run on a money market fund.

Reserve Primary had $64 billion in assets, a 60% redemption means over $38 billion would have been pulled...

[NVDave]

Break the buck on a money market fund and yea, people will run for the exits like a scalded cat.

[OB1kNOb]

Reserve Primary announced this week that it had "Broke the buck" on its $1.00 per share net asset value because of some Lehman paper in the portfolio that was marked down to zero. It also announced that it had put a 7 day freeze on redemptions.

So all money market shares are now worth less than a $1 each?