Redemptions from U.S. money market mutual funds declined on Friday, with investors pulling out $5.2 billion compared to $47.7 billion the day before, according to the Westborough, Mass.-based research firm iMoneyNet.
Last week, investors pulled out a record amount of cash out of money market funds following the crisis sparked by when the net asset value of New York-based Reserve Management Co. Inc.’s Primary Fund dropped to 97 cents.
On Friday, the U.S. Treasury announced a program to guarantee money market funds.
Details are just beginning to emerge, but researchers hope the move will begin to restore investor confidence in the industry.
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