RBS Changing Money-Market Funds to Accommodate Negative Yields
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RBS Asset Management Ltd. joined JPMorgan Chase & Co. and Morgan Stanley in changing the structure of money-market funds so they can continue to operate even when yields fall below zero, Fitch Ratings said.
RBS’s Global Treasury Funds Plc will automatically reduce the number of shares issued by its funds when total assets decline, an action not allowed under previous rules, according to Fitch. Without the change, record-low yields on the debt the funds buy will threaten their fixed-share price and force them to shut.