Quote:
Originally Posted by trj911
You are correct a GNMA fund will definalely have NAV fluctuation and is NOT appropriate for short term funds. Most MM funds are applying for participation in the Treasury Dept's Temporary Guarantee Program so why not go for the highest yielding MM fund that is participating? The Fed is going to gurarantee the fund will maintain a 1.00 NAV.
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You and John, thanks for posting, you are confirming my research and thoughts.
The Treasury 3-month program is only effective for funds you had on deposit with an enrolled fund as of 9.19.08. More than 50% of our short-term funds are in one of those, and are enjoying a yield over 3% (it is a really good fund). The remaining 50% is in a Treasury-only fund. We would not qualify for coverage under that fund, and the fund isn't enrolling anyway (logic being, why purchase a federal guarantee on funds that are already federally guaranteed??).
Anyway, I think someone just got it in their head that we could get guaranteed funds AND 3%+ yield AND short term liquidity/$1 NAV in a GNMA type fund. Not gonna happen.
Thanks guys. S'posed to meet w/big guy again tomorrow, will let you know what happens.