​ New M-​LEC SIV "​Superconduit" Elicits Yawns From Money Market Funds. The announcement yesterday of a new "​superconduit" fund, Master-​Liquidity Enhancement Conduit, or M-​LEC, which will purchase only high quality SIV (​structured investment vehicle) assets has us wondering "​Why bother?" While attempts to clean up remaining problem pockets of the asset-​backed commercial paper market are appreciated, this plan appears too limited, too vague, and too slow to matter much (​to money funds at least). The high-​quality SIVs, which this fund would buy, aren'​t where the problems are, and the SIVs don'​t want to sell assets at a discount anyway. The troubled SIVs are now primarily a matter for the banks backing them, and not too big an exposure area for the money market funds, which had been reducing their exposure. As today'​s Wall Street Journal article, "​Call to Brave for $​100 Billion Rescue", says, the plan is welcome but the details need to be worked out.

Your Name:
Your Email:
Recipient Email(s):

Use a comma or a semicolon to separate

Please retype symbols from the image:

Optional Message

Money Market News Archive