Securities and Exchange Commission, affirmed and simultaneously withdrawn the 'Ammf' rating assigned to Federated Municipal Obligations Fund, a U.S.-registered
tax-exempt money market fund (MMF) managed by Federated Investment Management Company.
New York: Fitch Ratings has affirmed and simultaneously withdrawn the 'Ammf' rating assigned to Federated Municipal Obligations Fund, a U.S.-registered
tax-exempt money market fund (MMF) managed by Federated Investment Management Company.
VRDOs, tax-exempt municipal securities issued by local governments to raise revenue, are primarily held by
tax-exempt money market funds that are typically owned and managed by the defendant banks, according to a news release from the city.
Tax-exempt money market funds have recently showed renewed strength after several years of lackluster yields in a prolonged low-interest-rate environment.
The new rules also saw a sharp slide in the assets of
tax-exempt money market funds, which contain securities issued by state and local governments.
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.
BofA Global Capital Management provides clients with access to a range of taxable and
tax-exempt money market funds; a U.S.
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Tax-exempt money market funds invest in short-term municipal securities and must have average maturities of 90 days or less.
Tax-exempt money market funds and other tax-advantaged investments, such as municipal bonds, may be attractive options for corporate cash reserves.
"Otherwise, the interest from a national municipal bond fund may be subject to state and local income tax." 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.
Table 1 Average Percentage of AU Outstanding Bonds Held by Different Investors in Municipal Bonds, 1976-1992 Investors(a) 1976-1986 1987-1992 Commercial banks 36.90 12.83 Households individuals) 34.21 50.11 Property insurance companies 17.67 13.33 Tax-exempt mutual funds 2.04 10.40
Tax-exempt money market funds 1.88 10.38 (a) The balance of the market is comprised of purchases made by state and local governments, pension funds, savings and loan associations, mutual savings banks, life insurance companies, and brokers and dealers.
Similar rules are being studied for
tax-exempt money market funds and a proposal may be forthcoming from the SEC in early 1992.
