Although credit markets are improving, money market funds are struggling to deliver positive returns, and as a result, since late last year, nearly all money funds, perhaps as many as 90%, have been waiving fees to avoid breaking the buck, The Wall Street Journal reports.

As long as the Fed overnight rate stays between zero and 25 basis points, this tenuous situation will continue. As Connie Bugbee, managing editor of iMoneyNet, put it, what other alternative do the funds have?

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