New Rules For Money Market Funds

Money Market Fund Managers will have to stick with more conservative investments due to the new rules being phased in by the SEC this year. This is good in that it should prevent what happened in 2008 when a major money market fund lost money and restricted access when Lehman Brothers collapsed. But it will mean even smaller yields which is hard to believe when current yields are averaging only 0.04%. This AP article (via Boston.com) provides a good overview of this issue.

Note, money market funds are different than bank money market accounts.