Money Market Funds Pay Virtually Nothing

By on December 2, 2009

The yield on money market mutual funds have sunk to “under mattress” levels. Andrew Bary at Barron’s reports that all of the largest funds are yielding less than 0.2%.

Bill Gross quipped, “If I was hoping to double my money, it would take approximately 6,932 years to get there at that rate!” after noticing a fund he has money in was yielding 0.1%.

The low rates are a result of the Federal Reserves’ attempt at reviving the economy and explain a lot about the massive rally in risky assets over the past year.



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