Until times of great financial crisis, money market funds are often taken for granted. The money market is a collective term used to refer to different market types that vary depending on the needs of borrowers and lenders. The funds specialize in investments in the debt security with minimum or short maturity or credit risks. Money market funds are required by people such as retail investors, Treasury bill, interbank loans requesters, banks, commercial paper, and financial managers because they offer them a means of safe short-term liquid investments. They also provide access to affordable funds to non-financial corporations, hedge funds, banks, and broker-dealers.
Why the Name Money Markets
The assets bought or sold in money markets are usually on short term basis; their maturity range does not exceed a year, and they can easily be converted into cash. This is the reason why they are called money markets. Depending on the type of security a money market fund invests in, it can either be tax-exempt or taxable. These may include municipal agencies, Treasury securities, repurchase agreements, federal agency notes or other state obligations.
Bruce’s Contribution to Money Market Fund
The world’s first money market fund was co-created by Bruce Bent II in 1970. Due to the impact on the country financial industry, the product has been recognized by the economic history of the American Museum as an affiliate of the Smithsonian Institution. Bruce Bent II is the current president and the vice chairman of the Double Rock Company. Double Rock is a company that provides financial management and money solutions to retail markets and broker-dealers. He has numerous patents credited to his name. Mr. Bent is an expert in retirement and cash management services. He has created innovative processes for the Double Rock firms that have been widely recognized as the standards for markets.
His contributions in cash sweep development and expansion of the FDIC-insured sweep programs has transformed and evolved the money management business into a multi-billion industry. He worked with the Access Control Advantage and helped in the design of an automated pre-defined loan contribution plan that cuts borrowing by 25%. He is responsible for the strategic direction of the companies he has worked for. He received a degree in Philosophy from Northeastern University.
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