Ssga Money Market Fund

Rule 2a-7, administered by the SEC, strictly limits the types of securities in which money market funds can invest. The securities held by money market funds should be considered highly creditworthy by both objective and subjective tests, and Rule 2a-7 imposes strict requirements for diversification of assets. The provisions of section 2a-7 are designed to ensure that money market funds maintain a stable NAV of $ 1.00 per share.

However, September 16, 2008 Reserve Management Corporation announced that one of its money market fund is unable to maintain an NAV of $ 1.00 Net (TAN), an event triggered by unprecedented market conditions have affected a wide range of financial companies. This type of event - known as "breaking the buck" - has been extremely rare in the only previous case of a money market fund breaking the buck, the Community Bankers, a small institutional money market funds , investors paid 96 percent of their principal.

However, the Treasury Department announced that, at least temporarily, it would guarantee money market funds against losses up to 50 billion dollars. Specically, for the next year the U.S. Treasury will insure holdings of any public offering eligible money market funds - both individual and institutional - that pays a fee to participate in the program.

You should consider contacting the SSgA http://www.ssga.com/weblogic/ContactServ ... and ask if they participate in Treasury program. If they do not, you can go to http://www.nytimes.com/2008/09/18/busine ... (bottom of page) and read statements from money market funds seem to be quite sure. Personally, I think your SSgA Funds money market is safe.