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As money-market funds swell, critics say fat yields are taxpayer subsidized

Por: MarketWatch Politics July 11, 2023

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Money-market funds use investor money to buy shorter-term debt obligations like government bonds, and the mismatch between investors’ ability to redeem their money daily and the funds investment in debt with longer maturities creates the risk of a dynamic similar to a bank run. The investment vehicles have surged in popularity as rising interest rates have enabled fund sponsors to pay higher dividends. Money-market funds now manage close to $8... + full article



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