Federated on Money Market Reforms
Federated Investors posted "Money Market Memo: What new reforms mean for Federated -- and you" yesterday. The piece explains the new SEC Money Market Fund Reforms. It says, "Early in 2010, the Securities & Exchange Commission adopted a series of reforms -- notably several amendments to Rule 2a-7 -- designed to improve disclosure, enhance liquidity, further limit risk and in general prevent future disruptions across the money market fund industry. Federated welcomes the following new reforms -- many of which reflect longstanding practices at the company -- that go into effect May 28 and June 30, 2010." In other news, see yesterday's Bloomberg article "Foreign U.S. Commercial Paper Issuance Falls Most in 10 Months", which says, "U.S. commercial paper outstanding sold by foreign financial companies and their domestic units fell the most in 10 months as fund managers trim holdings of the short-term debt issued by European banks." Bloomberg quotes our Peter Crane, "The funds are merely shortening maturities and letting paper roll off, rather than fleeing." Finally, see S&P's "Putnam Global Liquidity Fund Rated 'AAAm'".
