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41 votes
Accepted

Why does the Morningstar overview of VMMXX say 81% cash?

Morningstar's definition of cash includes "cash equivalents (fixed-income securities with a maturity of one year or less)". So I'm guessing 81% of its holdings are short-term enough to fall into this ...
Craig W's user avatar
  • 16k
13 votes
Accepted

Is it totally legal to refuse the payment of mature commercial paper debt?

It'd be more accurate to say that you have no priority claim on the assets of the company. With a secured loan, you have security over the collateral and if the company failed to repay the loan you ...
GS - Apologise to Monica's user avatar
13 votes

How does tiktok company earn money?

First off you need to consider startups aggressively subsidize their offer early on in order to capture market share. Popular examples of startups valued at billions of $ that were/are in the red ...
Leon's user avatar
  • 4,107
9 votes

Is it totally legal to refuse the payment of mature commercial paper debt?

with no consequence other than a dismal credit rating? I'd say that's a pretty severe consequence, given that at some point in the future they'll need to borrow money again, and no one will lend it ...
RonJohn's user avatar
  • 50.7k
8 votes

Who is buying all the debt?

Starting with your first question, why would anyone want to lend money at such a low interest rate?: Look at the loan as an investment Any investment has a risk/return profile. Getting higher returns ...
yoozer8's user avatar
  • 9,533
7 votes
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Can you lose money in Vanguard money market settlement fund?

Possible but very unlikely. Money market funds invest in high grade liquid assets and the primary goal is not to lose money. I have not been able to find an example of a Vanguard money market fund ...
zeta-band's user avatar
  • 3,997
7 votes

What is a Government Money Market Fund?

EDIT: answered the title question. What is a Government Money Market Fund? What it says on the tin: it's a money market fund backed by very short term government bonds. Is this a Fund to ...
RonJohn's user avatar
  • 50.7k
7 votes
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What is a Government Money Market Fund?

Can someone explain what do you mean by Government Money Market Fund? I looked at the link you provided and pulled the list of: Composition by Instrument (The makeup of a fund's portfolio expressed ...
mhoran_psprep's user avatar
7 votes
Accepted

How to start with cryptocurrency?

Counterpoint to your plan to 'invest' in cryptocurrency: Don't.
Grade 'Eh' Bacon's user avatar
6 votes
Accepted

Bank money market account vs. Brokerage money market fund

The number one difference is that bank savings accounts, or money market accounts (MMAs allow limited checking--six non-ATM withdrawals per month, max, else possible fees) have FDIC insurance up to $...
XB77's user avatar
  • 76
6 votes

Who is buying all the debt?

To a large extent, central banks. In order to stimulate economies, the central banks are lending out money at interest rates that are well below the rate of inflation. If you are a bank, and you can ...
Simon B's user avatar
  • 10.5k
5 votes

Shift from aggressive investment to Money Market

If you look at history, it shows that the more people predict corrections the less was the chance they came. That doesn't prove it stays so, though. 2017 is not any different than other years in the ...
Aganju's user avatar
  • 37.7k
5 votes

What's the point of a savings account, when I can put savings in money market?

In the United States, savings accounts are insured by the FDIC. If the bank fails, your money will still be safe. Money market accounts are not FDIC insured. Further, while generally safe ...
mattm's user avatar
  • 2,136
5 votes

Are there any downside in investing in a municipal money fund instead of purchasing municipal bonds assuming the money fund's yield > muni bond yield?

The 7-day yield of the fund is likely a taxable yield, whereas the 2.81% of the bond you highlighted is probably tax free, giving you a tax-equivalent yield of 3.75% (assuming a 25% tax rate). Either ...
0xFEE1DEAD's user avatar
  • 8,498
5 votes

is the treasury bill portion of a bond fund subject to state/local taxes?

I'm assuming this is a question about US taxation, from the context. You'll need to check how your State handles this situation, it may differ from State to State. Here's a quote from the California ...
littleadv's user avatar
  • 178k
4 votes
Accepted

What's different about a "money market" account here?

Most banks will not allow you to use online bill pay with a savings account as the funding source; rather, instead it must be funded from either a checking or money market account. The reason for this ...
TTT's user avatar
  • 47.2k
4 votes

What are the downsides to high-interest savings accounts?

The main reason people go with lower interest accounts is for convenience of having the money in the same institution with other accounts (like checking, auto loans, credit cards, etc.) with their ...
NL - Apologize to Monica's user avatar
4 votes

What's the point of a savings account, when I can put savings in money market?

You have to decide how to handle the 6 month emergency fund. You have to decide: - how much risk (most pick extremely low risk); - Ease of access; - Separation of funds; - Liquidity. Some decide ...
mhoran_psprep's user avatar
4 votes
Accepted

How come Money Market Funds always return a NAV of $1

The Wikipedia explanation suggests that: "With net asset values reported flat at $1.00, despite the market value variance of the actual underlying assets, an impression of rock solid stability is ...
Bob Baerker's user avatar
  • 76.8k
4 votes

Saving account vs. money market - do my numbers add up?

The return being quoted should be net of expenses, so 0.24% would be what you would be getting once the expenses are taken out. See this answer for more information about the different kinds of ...
Nobody's user avatar
  • 2,082
4 votes
Accepted

What does this mean,"Reinvigorating Human Capital"?

It's a term that refers to human productivity and experience. Here's a great definition for it from Investopedia: https://www.investopedia.com/terms/h/humancapital.asp They're saying they want to get ...
RiverNet's user avatar
  • 5,380
4 votes

Who is buying all the debt?

Those low interest rate home loans are tied in with the fixed income markets. In that context the question is not so much "how does my 30-year home loan have an interest rate lower than inflation&...
C8H10N4O2's user avatar
  • 1,406
4 votes

How can a fund have negative "Net Other Assets"?

Net Other Assets include cash and receivables and payables related to open security or capital stock trades. Presumably they have higher payables (a short-term liability) than receivables and cash, ...
D Stanley's user avatar
  • 138k
3 votes
Accepted

How do interest rates affect money market account rates?

If the Federal funds rate increases, will money market apys also increase? Probably. Money market account rates are generally based off of short-term rates that fluctuate over time. They might not ...
D Stanley's user avatar
  • 138k
3 votes
Accepted

How safe are money market accounts with online banks like CapitalOne?

I wanted to know how safe is such investment with online banks vis-a-vis regular banks? As far as I know, neither money market accounts nor savings accounts have any investment risk (within reason) ...
Nosrac's user avatar
  • 6,839
3 votes

Shift from aggressive investment to Money Market

I can understand your fears, and there is nothing wrong with taking action to protect yourself from them. How much income do you need in retirement? For arguments sake, lets say you need to pull 36K ...
Pete B.'s user avatar
  • 76.9k
3 votes

What are the downsides to high-interest savings accounts?

Without the details of a specific bank it's hard to give a definitive answer, but here are some potential valid reasons I can think of: Desire to use a savings account in the same bank that your ...
D Stanley's user avatar
  • 138k
3 votes

How to best diversify savings as a young person

Set up budget categories. Earmark your income as it is paid, for your budget categories. Pay your bills and expenses. For debts, pay the minimum on everything. There will be an amount left once ...
Xalorous's user avatar
  • 2,865
3 votes

Why is Residential mortgage not traded in a money market?

And to answer the question you asked: Because a residentual mortgage OUTSIDE of a securitized pool is neither standardized in any means (interest rate, duration, size). Noone wants to deal with a ...
TomTom's user avatar
  • 11.5k
3 votes
Accepted

Is this Money Market Fund giving negative yield?

If you look at the page you linked to, there are two different 7-Day Yield numbers, one with and one without waivers 7-Day Yield (with waivers) As of 12/08/2020 0.03% 7-Day Yield (without waivers) ...
Justin Cave's user avatar
  • 27.8k

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