The WSJ Fund Track column warns investors away from money market funds due to low yields in wake of last week adoption of new rules from the SEC. The topic is not a new one at the paper.

The column recommends that "... investors should look for safer, better alternatives to money funds."

The article is a reprint of a Chuck Jaffe column that first appeared last week Wednesday on MarketWatch.com. The paper published a similar article warning investors of the likely fall out of the changes on April 5 (see article)

The Jaffe column points out that money funds have already shrunk by $1 trillion since January 2009. At that time they held $3.8 trillion compared to $2.8 trillion today.

Yields on the highest paying funds are down to 20 basis points in taxable funds and a mere 25 bps in tax-exempt funds, according to Crane Data. 

Edited by: Sean Hanna, Editor in Chief


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