Negative Interest Rates & Investors
Some of the delay, discussion and possible confusion in the implementation of the Money Market Fund Regulation comes from the Share destruction mechanism / reverse distribution mechanism. The regulation focuses on sharp decreases in asset values and contagion related to that. Negative interests and comparatively benign: they are a known event; they tick away, like accrual – except that it is in the other direction: the investor’s principal gets eaten away. Negative interest r