​ SIVs Cheyne and IKB Defaults Raising Concerns Over Money Funds. Bloomberg reports that structured investment vehicle Cheyne Finance Plc and IKB Deutsche Industriebank AG'​s Rhinebridge Plc SIV are now in default on over $​7 billion of commercial paper. Any money funds unlucky enough to still own either of these, and who haven'​t already, will likely seek backing, protections, or buyouts while awaiting payment from the asset liquidation. These defaults cap off a week in which the money markets suffered a significant setback on their road to recovery. Concerns resurfaced last weekend following the proposal of a "​super-​conduit" to support the $​320 billion SIV market, and ended with another flight to Treasuries Friday. Money market funds as a whole continue to attract assets and to maintain $​1.​00 share prices. But this most recent round of problems, centered around SIVs without full liquidity backstops, may cause another handful of bailouts, or purchases of troubled securities, by advisors to protect portfolios. Nonetheless, money fund investors should continue to remain unaffected by this most recent bout of market turmoil.

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