Cash Plus Money Loan - Trapped by Market Turmoil - Wall Street Journal
The collapse in the auction-rate securities market has left investors stuck in investments they can’t cash out of. But this year, investors who had parked their savings in another type of cash alternative, known as auction-rate securities, may be in a pinch. For years, brokerage firms have pitched these securities — longer-term floating-rate bonds with rates that reset frequently — as a safe place for investors to park their savings. UBS is charging lower rates for clients who can’t get their money out of auction-rate securities — generally as low as the 30-day London interbank offered rate plus a quarter point, or currently about 3. In addition, Wall Street brokerage firms are also actively looking at creating a secondary market, which will allow investors to sell their auction-rate securities to other investors. Find Out More
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