Wednesday, September 17, 2008

Fixed Income Funds Drop Like Stones in the Sea

I mentioned this last night on my other blog. For more information, readers can read about my first mention of this phenomenon there. Fixed income funds, among the most rock solid and largest in the world, are collapsing this week on the heels of the latest government bail-outs. These four charts are four different funds, but are representative of the entire sector.

I don't know if this is related, but last night, for the first time, some money market funds were forced to drop their redemption values below the $1 price per share threshold. I wonder if that same phenomenon is being manifested in these other funds.