Home > Uncategorized > Money Market Funds & RBC

Money Market Funds & RBC

October 4th, 2011

I just want to clarify a few points about the treatment of money market funds in the RBC calculation:

-the money market funds receive the same RBC factor as cash (0.3%)

-that being said, the charge from the funds (0.3% * amount invested in fund) actually goes towards R2, not R0 (Feldblum stated this in his paper); even though the funds consist of “R0″ types of investments

This is not intuitive at all, and is therefore something that you are going to need to memorize.

Angelo Uncategorized

  1. No comments yet.
  1. No trackbacks yet.