TIAA Says Negative Yields Could Soon be a Possibility in Money-Market Products. Why That’s a ‘Horrible Deal’ for Investors.
May 27, 2020 by Alexandra Scaggs
Negative yields could be a possibility for U.S. investors sooner than expected—at least, for investors in a couple of money-market products managed by TIAA.
In a notice to investors this week, TIAA said it plans to temporarily waive fees on the CREF Money Market Account and waive fees over the longer term on the TIAA-CREF Access’s Money-Market Fund. Because U.S. interest rates have dropped to near zero, even a couple of TIAA products’ low fees would cause investors to lose money in those investments. Fee waivers were common practice during and after the financial crisis, when rates were similarly low.
Originally Posted at Barron's on May 26, 2020 by Alexandra Scaggs.
Categories: Industry Articles
