Comment by oblio
5 months ago
Fairly sure money market funds have risks and carry interest (interest = risk).
People found that out the hard way in 2008.
5 months ago
Fairly sure money market funds have risks and carry interest (interest = risk).
People found that out the hard way in 2008.
This is correct and addressed with diversification. Is money is spread across multiple safe instruments your chances to get in trouble is minimal. If you do get in trouble then your exposure is small too.
Indeed, and good call out; one likely source of the "novel" counterparty risk I allude to (though really not even novel - "different" is probably the more reasonable word).