This paper does not make assertions about the significance of the support to the sponsor, but rather our focus is on the impact of support to prime MMMFs and its potential to cause investors to perceive that prime MMMF portfolios are less risky than they actually are. It should be noted that a support amount as reported in this paper is not necessarily equivalent to a loss realized by the fund sponsor. Instead, in the case of a security purchase, it is indicative of the loss that would have been realized by the fund sponsor if it had disposed of.
