5min chapter

Forward Guidance cover image

What Will Break First? | Joseph Wang & Peter Crane

Forward Guidance

CHAPTER

Do You Think the C Ec C Will Make Money Market Funds More Profitable?

Sosee: The c ec c wants to enforce a regulation called swing pricing. He says it would make money market funds less like checking accounts and more like an investment. Sosee said the industry is opposed, but investors are likely to be terrified by this move. In 20 16, as pete mentioned, you had about a trillion dollars out of prime money market funds into govy funds because many investors did not find it acceptable that they could invest in them.

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