"Money Market Funds Intensify Their Focus On Safety And Liquidity". Standards & Poor's says "money fund managers are taking actions that emphasize safety and liquidity" in the current environment. A new report states, "For about the past month, portfolio managers have not invested in many asset-backed securities, and almost all had stopped buying extendible asset-backed commercial paper (XABCP).... Many managers have also put internal restrictions on the purchase of CP offered through collateralized debt obligations (CDOs) and CP offered out of structured investment vehicles (SIVs). Recently, as the market has shown signs of stabilizing, several fund managers have resumed buying some traditional ABCP securities and well-established extendible ABCP with very short maturities." The report says no money funds have been downgraded and no funds have experienced a run on assets.

Email This Article

Use a comma or a semicolon to separate

captcha image