by Alex Barrow
Things could get real interesting in the next few months.
On Oct. 17th a new SEC rule finally comes into play that will affect money market funds and liquidity across the financial sphere. There’s potential for some really big moves here.
Most investors don’t know this is coming, making it a giant surprise when it finally happens. And that’s because SEC rules tend to get complicated, and their knock-on effects get even muddier. We’ll do our best to simplify exactly what’s happening and what it means for the markets.
The story starts with money market funds — the open-ended mutual funds that invest in short-term debt such as US Treasury bills and commercial paper.