break the buck

In US money market funds, to have the value of a company's individual shares fall below one dollar (in slang, referred to as a "buck"). During the recession, a great number of companies that broke the buck ended up closing altogether.

break the buck

To fall below the value of one dollar. Used of the net asset value of a mutual fund, especially a money market fund.

See also: break, buck

American Heritage® Dictionary of the English Language, Fifth Edition.

See also:

fall below
fall below (something)
drop below
drop below (something)
be below par
be below/under par
break (one's) fall
break fall
break one's fall
below

References in periodicals archive

(89) The "first mover advantage" is the investor's incentive to make early redemptions from a stable NAV fund (90) when the investor perceives that the redemptions will continue until all liquidity is removed from the fund and the fund will break the buck, thereby potentially causing the investor to lose money if he redeems his shares.

Default in a position held by a MMMF that is greater than 0.5% of the fund's assets can cause a MMMF to "break the buck." Id.

What money market mutual fund reform means for banks and money market deposit accounts

Note the difference between this case and an intermediary's solvency constraint, where the MMF does not break the buck when it can pay all creditors a minimum gross return of 1, whereas the intermediary has to pay the promised interest to the creditors to be solvent.

Assets Liabilities m s = [alpha](l - [mu]) y [l.sub.S] = 1 - [alpha] [l.sub.J] = [alpha][mu] e = 0 The fund does not break the buck at t = 2 if and only if it can pay a return of 1 to all creditors, that is, when [theta]y + [chi]([alpha])(m - [alpha](1 - [mu])) [greater than or equal to] [alpha][mu] + 1 - [alpha], which gives us

Stability of funding models: an analytical framework

In the rare event that an MMF does break the buck and liquidate, the MBR rule would allocate losses differently than under current rules, which divide losses solely in proportion to each investor's shares in the fund when it closes.

The minimum balance at risk: a proposal to mitigate the systemic risks posed by money market funds

But as the yields on the short-term liquid assets of these funds approach zero, a small negative shock could cause any of them to "break the buck" if marked to market.

The zero interest rate fallacy: why raising rates is the only means of escaping the liquidity trap and restoring financial intermediation

If the US government defaults, however, all of them will "break the buck," meaning that they will be unable to maintain the principal value of the money that has been placed with them.

Defaulting to big government

A money market is said to "break the buck" when its NAV drops below $1.

Cash management strategies: understand your choices to avoid costly mistakes

To a lesser extent, the notes may be downgraded if the money market funds should 'break the buck', Hannover Rueck SE fails to make timely retrocession premium payments or MPIUA materially changes its mission or operations.

Fitch Affirms Cranberry Re Limited Catastrophe Notes at 'Bsf'; Outlook Stable

government agency recently looked at what might happen to money funds if the eurozone's problems grew or some corporations defaulted on debt and "found so many funds would break the buck that the conclusions were considered too alarming to publish."

Money-Market Funds Are Weak Link (FT)

After the break the Bucks dominated possession but struggled to find a breakthrough as Phil Trainer and Chris Sharp both missed chances.

Telford fail to make it count

However, Steve Moore pounced to break the Bucks' hearts.

Hat-trick hero Byers helps Linnets fly pastWorksop

词组	break the buck
释义	break the buck break the buck In US money market funds, to have the value of a company's individual shares fall below one dollar (in slang, referred to as a "buck"). During the recession, a great number of companies that broke the buck ended up closing altogether. See also: break, buck Farlex Dictionary of Idioms. break the buck To fall below the value of one dollar. Used of the net asset value of a mutual fund, especially a money market fund. See also: break, buck American Heritage® Dictionary of the English Language, Fifth Edition. See also: fall below fall below (something) drop below drop below (something) be below par be below/under par break (one's) fall break fall break one's fall below References in periodicals archive (89) The "first mover advantage" is the investor's incentive to make early redemptions from a stable NAV fund (90) when the investor perceives that the redemptions will continue until all liquidity is removed from the fund and the fund will break the buck, thereby potentially causing the investor to lose money if he redeems his shares. Default in a position held by a MMMF that is greater than 0.5% of the fund's assets can cause a MMMF to "break the buck." Id. What money market mutual fund reform means for banks and money market deposit accounts Note the difference between this case and an intermediary's solvency constraint, where the MMF does not break the buck when it can pay all creditors a minimum gross return of 1, whereas the intermediary has to pay the promised interest to the creditors to be solvent. Assets Liabilities m s = [alpha](l - [mu]) y [l.sub.S] = 1 - [alpha] [l.sub.J] = [alpha][mu] e = 0 The fund does not break the buck at t = 2 if and only if it can pay a return of 1 to all creditors, that is, when [theta]y + [chi]([alpha])(m - [alpha](1 - [mu])) [greater than or equal to] [alpha][mu] + 1 - [alpha], which gives us Stability of funding models: an analytical framework In the rare event that an MMF does break the buck and liquidate, the MBR rule would allocate losses differently than under current rules, which divide losses solely in proportion to each investor's shares in the fund when it closes. The minimum balance at risk: a proposal to mitigate the systemic risks posed by money market funds But as the yields on the short-term liquid assets of these funds approach zero, a small negative shock could cause any of them to "break the buck" if marked to market. The zero interest rate fallacy: why raising rates is the only means of escaping the liquidity trap and restoring financial intermediation If the US government defaults, however, all of them will "break the buck," meaning that they will be unable to maintain the principal value of the money that has been placed with them. Defaulting to big government A money market is said to "break the buck" when its NAV drops below $1. Cash management strategies: understand your choices to avoid costly mistakes To a lesser extent, the notes may be downgraded if the money market funds should 'break the buck', Hannover Rueck SE fails to make timely retrocession premium payments or MPIUA materially changes its mission or operations. Fitch Affirms Cranberry Re Limited Catastrophe Notes at 'Bsf'; Outlook Stable government agency recently looked at what might happen to money funds if the eurozone's problems grew or some corporations defaulted on debt and "found so many funds would break the buck that the conclusions were considered too alarming to publish." Money-Market Funds Are Weak Link (FT) After the break the Bucks dominated possession but struggled to find a breakthrough as Phil Trainer and Chris Sharp both missed chances. Telford fail to make it count However, Steve Moore pounced to break the Bucks' hearts. Hat-trick hero Byers helps Linnets fly pastWorksop
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