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US Regulators Allow BlackRock Funds to Lend to One Another – Reuters

Full Article: Reuters

Mutual funds and money-market funds offered by the world’s largest asset manager could borrow up to a third of their assets in total – or up to 10 percent of assets without posting collateral – through BlackRock’s “InterFund Program.”

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  • Wolfman
    WolfmanSeptember 9, 2016"I'm with Merlin on this one. It sounds like something that the fund wants to do, but doesn't seem like something I'd want them to do with my money. Maybe the 5,300 people who got fired from Wells Fargo can help sort it out...…"
  • Merlin
    MerlinSeptember 9, 2016"No expert on inter-fund lending practices but this doesn't smell right to me. I understand from the article that such practices are 'common' and already in place at Fidelity and Vanguard but why? The article states that MF investors for both funds, the borrowing fund and the lending fund, would benefit as the rate would likely be below alternatives for the borrowing fund and above alternative short term investments for the lending fund. I will leave it to others to co…"

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2 Comments on "US Regulators Allow BlackRock Funds to Lend to One Another – Reuters"

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Merlin
Member
No expert on inter-fund lending practices but this doesn’t smell right to me. I understand from the article that such practices are ‘common’ and already in place at Fidelity and Vanguard but why? The article states that MF investors for both funds, the borrowing fund and the lending fund, would benefit as the rate would likely be below alternatives for the borrowing fund and above alternative short term investments for the lending fund. I will leave it to others to comment on the accuracy of this. I don’t often find myself in agreement with academics but my inclination is to… Read more »
Wolfman
Member

I’m with Merlin on this one. It sounds like something that the fund wants to do, but doesn’t seem like something I’d want them to do with my money. Maybe the 5,300 people who got fired from Wells Fargo can help sort it out…

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