Bloomberg writes "Auction-Rate Bond Market Will 'Cease to Exist', Citigroup Says". The article says mutual funds and money funds may benefit at the expense of brokerage firms due to troubles in the auction-rate securities market. It quotes Citigroup analyst Prashant Bhatia, "Basically, clients could stop using the services of their brokerage and/or asset management firms as a result of a loss of trust.... Plain and simple, the money fund turned out to be a superior product and as the ARS crisis is resolved, we expect inflows into money funds." Bloomberg adds, "It will also benefit firms such as Federated Investors Inc., BlackRock Inc., and Charles Schwab Corp. that have large money-market funds."

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