That's a cost of
putting illiquid assets into a liquid fund.
Not exact matches
It's illogical to then
put most of your monetary wealth in yet another
illiquid, undiversified
asset.
Also, in some cases where your estate is made up of
illiquid assets such as a business or real estate, you would not want to have to
put your heirs in a position to having to sell the
assets.
Such a run on
assets would
put money market funds in the difficult situation of having
illiquid Treasuries in its portfolio while needing to raise cash to pay off exiting shareholders.
Or, to
put it another way, they have borrowed in liquid form and invested the proceeds in
illiquid assets.