Don't be this guy.
So Uncle Carl may have gotten a little carried away when he called the high-yield debt market “a keg of dynamite that sooner or later will blow up” and take everyone else with it. At the very least, it’s looking a little more like later.
That means that your other investments are safe and there’s no reason to perhaps pull a few bucks from your money-market account, right?
The OFR’s report, however, sees broader mutual fund fragility. In particular, the OFR points to money market mutual funds and so-called stable-value funds as being vulnerable to the problem of liquidity mismatch—where investors can attempt pull money from a fund faster than its managers can raise cash by selling assets.
The risks may be particularly high over the next couple of weeks.