JPMorgan, Natixis Woo ‘Paranoid’ Customers With New Money Funds
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JPMorgan Chase & Co. and a U.S. unit of French bank Natixis SA are offering money-market mutual funds aimed at wooing back customers spooked by the financial crisis into moving their money to federally insured deposits.
The new offerings promise to keep the average maturity of their holdings at 10 days or fewer, one-fourth that of competing funds, according to the companies and researcher Crane Data LLC. Shorter maturities allow managers to shift more quickly out of a troubled issuer and into other securities or cash.