Hear a recording of yesterday's presentation by Federated's CEO Christopher Donahue at Lehman Brothers' Global Financial Services Conference. Donahue said Federated's money fund business has "been a stalwart in these hard times." He said, "We support the 2a-7 rules. They have worked very well when they're followed." He also noted `Federated's recent deal to purchase Fifth Third's $1 billion in municipal money fund assets (see Sept. MFI), and added in the Q&A, "We are Sigma free, and they paid off on-time and in full." See also Federated's "Statement on the Debt of Fannie Mae and Freddie Mac", which was posted yesterday. It says, "Federated continues to believe that agency paper constitutes an eligible security for money market funds.... [I]t is our view that Fannie Mae and Freddie Mac continue to represent minimal credit risk."
