The Treasury released more details Sunday about its guarantee to insure money-market funds against losses. Unfortunately for investors of the Reserve Primary Fund, Treasury said it will cover shareholders only for balances held in these funds as of the close of business last Friday (September 19). The Reserve Primary fund dropped below a $1 net asset value on Tuesday, September 16.
Over the weekend, scores of Reserve Primary Investors posted to message boards—including the comments section below—in search of answers, such as whether Treasury insurance would cover them. More details:
- The program will be available for one year.
- Tax-exempt money market funds—aka munis—are eligible.
- The IRS will release further details on the program, including what documentation fund companies will need to participate.