That “breaking the buck” event set off worries of a possible run on other money market funds. And the Securities and Exchange Commission pushed through reforms that took effect in October that could make certain types of money market funds less appealing and less liquid. Under the new rules, retail money market mutual funds sold to individuals will continue to offer a steady $1 net asset value, but the value of institutional money market funds will now float, based on current market prices. Some of the rules are quite technical: Retail money market mutual funds that invest in corporate debt (known as prime money market funds) and municipal money market funds are required to keep at least 30 percent of their money in securities that can be easily sold within five business days. The largest retail money market fund, now called Fidelity Government Cash Reserves (it was a prime money market fund known as Fidelity Cash Reserves until the company changed the fund’s mandate), yielded just 0.13 percent in early January.

Source: New York Times January 13, 2017 21:22 UTC