Crane Data Subscribers
Big Money Fund Companies Address SIVs, Say Still "Minimal Credit Risk". In the most recent case of a fund company correcting media misinformation, Fidelity Investments has released, "A Discussion of the Structured Investment Vehicle Marketplace and Fidelity's Money Market Funds". The brief discusses SIVs, M-LEC, SIFMA and Fidelity's support of these. "The SIV market is a small part of the trillion-dollar-plus money market mutual fund industry that investors utilize every day as a source of stable, high quality investments for their cash management needs.... We can state unequivocally that Fidelity's money market funds have continued to provide safety and security for our clients' cash investments.... Importantly, we have been -- and will continue to be -- proactive in keeping our money market funds safe and protecting the $1.00 net asset value (NAV), which has always been our #1 objective when it comes to managing money funds.... We believe our holdings of SIV debt securities ... continue to represent minimal credit risk," says the brief. SIVs accounted for 3.6% of assets of Fidelity's prime money funds. SIVs held include: HSBC's Asscher and Cullinan Finance; Citi's Beta Finance, Centauri and Dorada; Dresdner's K2, BMO's Links Finance, AIG's Nightingale Finance, and Gordian Knot's Sigma Finance.
