Money market fund
BankingDefinition
Mutual fund holding short-term Treasury bills, commercial paper, and other safe instruments. Maintains $1 NAV (in most cases). Not FDIC-insured but considered very safe.
$6T+ in assets as of 2025 — biggest growth since 2007 thanks to high yields. Government MMFs (only Treasuries + agencies) are safer than prime MMFs (which also hold corporate paper). 2008 and 2020 saw "breaking the buck" scares — Reserve Primary Fund's 2008 loss prompted MMF reform.
$6T+ in assets as of 2025 — biggest growth since 2007 thanks to high yields. Government MMFs (only Treasuries + agencies) are safer than prime MMFs (which also hold corporate paper). 2008 and 2020 saw "breaking the buck" scares — Reserve Primary Fund's 2008 loss prompted MMF reform.