​ Competitors Bloodied, But True Money Market Funds Remain Unscathed. Money funds have survived the recent panic in the money markets unscathed, but the same can'​t be said for their competition. Over the past several years, products were introduced claiming higher yields with supposedly similar risk profiles as money funds. Alas, it now appears that these were too good to be true. Bank loan funds, separately managed accounts, direct money market investments, auction-​rate securities, enhanced cash, ultra-​short funds, stable value funds -- almost all are having issues. Even some high-​yield bank deposits are suffering from asset flight (see BankDeals on Countrywide). Meanwhile, money funds are experiencing their largest monthly and quarterly inflows in history. The WSJ reports today "​Investors Flee Bank-​Loan Funds; Assets Down 33% Since Late June". The article adds, "Investors have also turned tail on another typically defensive category of bond funds ... ultra-​short."

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