This month in Crane Data’s Money Fund Intelligence (see http://www.cranedata.us), we discuss the volatility of yields in the tax-exempt money fund marketplace, and the factor that the BMA Index (published by the Bond Market Association) plays in contributing to this volatility. Some money fund managers believe that dealers are purposely pushing the index down at the beginning of each month, in order to gain favor with their larger issuer clients (the state and municipalities that sell debt to funds). Is this volatility caused by dealer interest? Or is it merely a function of an illiquid market beset by institutional investors? We’d love to hear your thoughts.
0 Responses to “BMA Index and Tax-Exempt Money Funds”