Fed Rate Increase Too Late for BlackRock, Alpine Muni Cash Funds
- Tax-exempt money-market assets plunge 50 percent since 2008
- Wave of consolidation as funds prepare for new federal rules
Will Global Events Impact Fed Rate Hike Decision?
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Whether the Federal Reserve’s first interest-rate increase since 2006 comes this week or not, it won’t be soon enough for Alpine Funds’ municipal money-market fund.
Alpine Woods Capital Investors closed the $120 million fund in April after more than 12 years of operations, joining seven other tax-exempt money-market funds that have liquidated in the last 12 months, according to data compiled by Bloomberg. That number is set to grow. BlackRock Inc. in July said it would close its New Jersey, North Carolina and Virginia money funds by the end of year, leaving it with 15.