Reuters writes "U.S. money funds turn to Canada on Europe worries". The article says, "U.S. money market funds have increased their investments in Canada for safety's sake as the debt turmoil in Europe rages on. The $2.6 trillion money fund industry, which had been a major investor in short-term euro-zone bank debt, sees the world's 10th-biggest economy in better shape than Europe. Canadian banks are deemed safer than their European counterparts, given their minimal exposure to the debt-laden and weaker euro-zone nations, the focal point of that region's crisis, analysts and fund managers said.... U.S. money funds so far this year increased their holdings of Canadian bank debt by $28 billion. This is only a fraction of the $266 billion drop in their ownership of commercial paper, certificates of deposit and other short-term securities from euro-zone banks, according to J.P. Morgan Securities." See also, Investment News' "Let's get real about money market funds", which says, "It is time for investors and financial advisers to get real about money market funds -- and either accept them or reject them for the investment vehicles that they are."

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