break the buck


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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

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
References in periodicals archive ?
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
The important difference between this proposal and the first proposal, where the creditors that redeem at t = 1 become junior debtholders at t = 2, is that in this case early withdrawals generate an equity cushion so that the region over which the fund does not break the buck widens.
The fund can pay all creditors one unit and it does not break the buck when [theta]y + [chi]([alpha])(m - [alpha]) [greater than or equal to] 1 - [alpha].