NEW YORK -- Fitch Ratings has downgraded Alpine Municipal Money Market Fund, a
tax-exempt money market fund sponsored by Alpine Woods Capital Advisors LLC, to 'AAmmf' from 'AAAmmf.
Government Money Market Fund, and the Wilmington
Tax-Exempt Money Market Fund.
Participation in the program by a
tax-exempt money market fund will not jeopardize the tax-exempt status of payments.
AXP(R) Tax Free Money Fund will become RiverSource(SM)
Tax-Exempt Money Market FundTax-exempt money market funds have recently showed renewed strength after several years of lackluster yields in a prolonged low-interest-rate environment.
Prime and
tax-exempt money market funds that are sold to institutional investors must price their shares and transactions using a "floating" net asset value (NAV), rather than the stable $1 NAV that such funds have long maintained.
Tax-exempt money market funds and other tax-advantaged investments, such as municipal bonds, may be attractive options for corporate cash reserves.
Bolton says that there are also national and single-state
tax-exempt money market funds that can provide tax-free interest on cash you're parking for the short-term.
This study has shown that
tax-exempt money market funds have replaced the banking sector as the primary market for short-term securities.
Similar rules are being studied for
tax-exempt money market funds and a proposal may be forthcoming from the SEC in early 1992.
Should a Fund seek to issue VRDP, the timing of the Fund's issuance may vary and is subject to various factors, including, but not limited to, approval by the Fund's Board of Directors/Trustees, the availability of liquidity providers, the willingness of
tax-exempt money market funds to invest in VRDP, the ability to obtain necessary ratings for the VRDP and other market conditions.
Such issuance of VRDP will depend on market conditions, the willingness of
tax-exempt money market funds to invest in VRDP, obtaining necessary ratings for the VRDP, the need to comply with applicable laws and regulations, and on the agreement by all parties, including the liquidity provider and others to final terms of the transaction, among other factors.
