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Strategies & Market Trends : Value Investing

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OldAIMGuy
To: OldAIMGuy who wrote (62670)10/10/2019 9:05:54 AM
From: E_K_S1 Recommendation  Read Replies (1) of 78482
 
RE: Money Funds and What's inside - SWVXX Schwabd's Money Fund
( link to complete SWVXX Report)

I was surprised to see all the Foreign Bank paper in the SWVXX (top 10 holding). But after some thinking, maybe it's better than having too many too-big-to-fail banks in the basket. Also could allow more diversification holding non-US currency paper.

Remember FED will allow 'cash' at the Repo-Window using 'any' tier one asset. So I see no problem w/ liquidity w/ the paper they hold (at least for now).



The duration is small too.

However, the composition in most/all Money Funds are VERY different now than say before the 2011 Recession.

EKS
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