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This is an important distinction. When the money marketeer redeems a dollar for less than a dollar it "Breaks the Buck" [0]. Cowen's MM account IIRC was the first one to do that back during the 01 crash.

[0] https://www.investopedia.com/terms/b/breaking-the-buck.asp



The rules around breaking the buck were significantly changed after 08. Funds can suspend transactions instead now.


As if not letting people out is better than letting them out at a haircut. Need to maintain the illusion of safety I suppose.


Yeah. And the haircut is usually quite small. If I sold my money market for 98 cents on the dollar in a financial crisis I really wouldn't be that upset.




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