Reuters posted the article, "Money fund turmoil spotlights New Jersey portfolio'​s '​shadow price'." They write, "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)." (​A separate disclosure shows that BNY Mellon "​topped off" the tiny fund'​s NAV with a mere $​89,​000 contribution, so the NAV is now back at $​1.​0000.) The article quotes, "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." It adds, "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 potentially heading in the direction of breaking the buck, even though it has not. The disclosure is triggered if a shadow price falls below $​0.​9975 a share." The article emphasizes, "The shadow price NAV of the General New Jersey Municipal Money Market Fund, for example, deviated enough from its $​1.​00 stable NAV that it required BNY Mellon on Monday to file a material event disclosure with the SEC. The fund'​s shadow NAV fell as low as $​0.​9968 per share on Friday. The market NAV has since recovered to $​0.​9987. But the fund was never breaking the buck, Crane and other analysts in the industry said." Reuters adds, "As long as a money fund'​s per-​share shadow price remains in the range of $​0.​9950 to $​1.​1050, the fund can price its portfolio at a stable $​1 NAV."

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