BlackRock Money-Market Fund Prepares for Negative Yields
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BlackRock Inc., the world’s biggest money manager, told investors in a 1.4 billion-euro ($1.8 billion) liquidity fund that it will take measures to maintain the fund’s stable share price after interest rates in Europe turned negative.
Blackrock wrote to investors giving 14 days notice of its intention to switch on the Reverse Distribution Mechanism for the ICS Europe Government Liquidity Fund, the New York-based firm said in an e-mailed statement today. BlackRock said the only alternatives outside triggering the mechanism would be to close or wind down the fund.