Are Money Market Mutual Fund Sponsors Under The Most Stress Ever? Bloomberg writes, "Money Fund Sponsors May Be Under Most Stress Ever, Moody's Says", quoting Moody's Investor Service's Henry Shilling, "You're seeing more stress perhaps than we've ever seen before both in terms of the number of issues that are involved and the aggregate market value of the troubled securities." The article says, "The 10 largest managers of U.S. money-market funds owned a total of about $50 billion in short-term debt of SIVs, some of which has defaulted." Seven advisors to date -- Columbia, Credit Suisse, Evergreen, First American, SEI, STI, Western Asset -- have acted to date to shore up funds or to prevent "losing their top credit ratings". Moody's cites 145 cases prior to 2007 when sponsors acted to protect funds, the bulk of which occurred in 1994. Our Peter Crane disagrees with Moody's most dire assessment, saying in the Bloomberg piece, "The difference in 1994 is that everyone was under duress [due to rising rates].... The funds affected now are just a slice of the money-fund universe." Crane says assets breaking $3 trillion has also helped "fund managers mitigate exposure to the distressed debt".

Email This Article




Use a comma or a semicolon to separate

captcha image

Money Market News Archive

2025 2024 2023
May December December
April November November
March October October
February September September
January August August
July July
June June
May May
April April
March March
February February
January January
2022 2021 2020
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2019 2018 2017
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2016 2015 2014
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2013 2012 2011
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2010 2009 2008
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2007 2006
December December
November November
October October
September September
August
July
June
May
April
March
February
January