Around three mutual fund firms are seeking net asset value (NAV) buffers for some or all money market funds, MutualFundWire reports. Fidelity, Schwab and Wells Fargo have submitted a joint comment letter on the President’s Working Group Report on Money Market Fund Reform. The NAV buffer, which will address both liquidity and credit concerns, came ahead of other ideas, such as floating NAVs or capital requirements. The trio added that the proposals in the report, such as floating the NAV or imposing bank-like capital requirements, may have negative effects on money market mutual funds and short-term markets.
Click here for the story from MutualFundWire.