The WSJ's CFO Journal writes "Corporate Impact From Greece Looks Tame, So Far". It says, "Months of warnings about debt defaults in Greece and Puerto Rico have allowed the vehicles where corporate finance chiefs store their cash time to shelter themselves from the immediate impact of crises in those regions. For example, cash isn't flowing out of money-market funds, which hold billions of corporate cash, according to Peter Crane, president of Crane Data, which tracks the industry. "It's relatively calm," he said. He noted that assets in money funds rose $1.9 billion on Friday to $2.522 trillion, suggesting that few corporate treasurers were pulling money out in advance of this weekend's talks. There's very little reason for them to. Money funds don't invest in low rated debt such as Greek or Puerto Rican bonds, he said. As money flows into high-quality assets such as U.S. Treasurys, money funds invested in those securities could see more inflows. Anthony Carfang, a partner at Treasury Strategies Inc., said that new banking regulatory rules could aid the funds. He explained that international bank rules are forcing banks to hold more in U.S. Treasurys, which could reduce the number of the bonds in circulation, as more investors seek the bonds as safe havens. Money funds, which are large holders of U.S. government bonds could therefore find it lucrative to lend out their holdings of bonds for investors who need the securities for the short term."

Email This Article




Use a comma or a semicolon to separate

captcha image

Daily Link Archive

2024 2023 2022
March December December
February November November
January October October
September September
August August
July July
June June
May May
April April
March March
February February
January January
2021 2020 2019
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2018 2017 2016
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2015 2014 2013
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2012 2011 2010
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2009 2008 2007
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2006
December
November
October
September