Euro Issues Affect Money Market Funds

U.S. citizens with money market funds may feel a bit nervous about their investments since issuers of this short-term debt hold big slugs of European debt — the same debt that’s in crisis right now.

As of March 31, nine out of the 10 corporate issuers of the debt held by prime money funds were big European firms. However, despite the fact that the crisis is impacting money market funds, analysts advise not to drop them because many funds are trimming their European holdings.

Also, analysts say that yields have improved, which is a good thing. (Wall Street Journal)