Financial Times FT.com

Money market funds face new pressure

By Deborah Brewster in New York

Published: March 24 2008 21:11 | Last updated: March 24 2008 21:11

Money market funds, reeling from the subprime crisis, are coming under fresh pressure from falling interest rates as the funds’ yields shrink to leave little return after management fees have been covered.

More funds are believed to have called on their parent companies for liquidity support. Others are waiving investors’ management fees, a tactic commonly used the last time rates fell sharply.

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