47d repurchase agreements bank or security dealer

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Unformatted text preview: l portfolio management companies Professionally managed portfolios of marketable securities; provide instant liquidity None—depends on wishes of investor Vary, but generally higher than U.S. Treasury issues and comparable to negotiable CDs and commercial paper 1.47%d Repurchase agreements Bank or security dealer Bank or security dealer sells specific securities to firm and agrees to repurchase them at a specific price and time Customized to purchaser’s needs Generally slightly below that associated with the outright purchase of the security Nongovernment Issues aThe prime rate of interest at this time was 4.75%. obtained for 3-month maturities of each security. cFederal National Mortgage Association (Fannie Mae) constant maturity debt index is used here. dThe Dryfus Money Market Fund with an average maturity of 64 days is used here in the absence of any average-yield data. Comparatively low money market mutual fund yields occur when interest rates are historically low, as was the case in early 2002. Source: Wall Street...
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