​ Failed Auctions Totalling $​6 Billion Roil Auction-​Rate Securities Market. This week'​s issue of Financial Week discusses failed auctions in the auction-​rate securities market (​ARS). Auction-​rate securities, which money funds are not allowed to invest in because of the lack of a "​hard" interest-​rate reset, had been used by a number of corporate investors as higher-​yielding "​liquid" investments until a 2006 accounting firm ruling that ARS were not "​cash equivalents" under FAS-​95 (​Financial Accounting Standards). Peter Crane tells FW, "​At least 60 auctions have failed in recent weeks, which could represent as much as $​6 billion" of the estimated $​300 billion market. The article adds, "But the inherent risks that have abruptly come to light are scaring some corporate cash managers away."

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