BOSTON (Reuters) – A New Jersey municipal money-market fund run by BNY Mellon Corp is still paying investors $1.00 a share, even though the mark-to-market price of the fund recently dropped to $0.9968 per share, analysts said on Tuesday.
It is not unusual for money-market fund prices to fluctuate from their $1-per-share stable net asset value (NAV).
But the $51 million General New Jersey Municipal Money Market Fund is the only money fund, as of Tuesday, that had to disclose a material decline in its market value NAV, according to disclosures with the U.S. Securities and Exchange Commission (SEC).
Coronavirus-led turmoil in debt markets is putting extra downward pressure on money fund mark-to-market values, or shadow prices, said Pete Crane, president of money fund research firm Crane Data LLC.
After the 2007-2009 financial crisis, the SEC put in rules that require funds to disclose a relatively big downward move in shadow price. It serves as a pre-notification that a fund is…