Rates Current as of Friday February 10, 2012

Breaking the buck occurs when a money market fund is unable to repay its $1.00 NAV per share. There have been several incidents this year in which a manager bought securities to prevent a fund from possibly dropping below a $1.00 net asset value or breaking the buck. The only example where a fund’s net asset value fell below $1 was in 1994 when the $82million Community Bankers U.S. Government Money Market Fund was liquidated and investors got 96 cents on the dollar. It was an institutional fund, so no individual investors lost money.

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