The Financial Times writes "US money funds cut lending to EU banks". The article says, "The biggest US money market funds have cut their lending to European banks to another record low while increasing their holdings of US government debt to levels reminiscent of those seen during the financial crisis. The 10 largest funds trimmed their short-term lending to European banks by 4 per cent on a US dollar basis between the end of November and the end of October, according to new data from Fitch Ratings.... While total exposure to the eurozone has been falling, the funds have also been increasing their use of secured lending to the region's financials in another sign of risk aversion. At the end of November, so-called repos accounted for 27 per cent of total European exposure, up from 17 per cent at the end of August and just 10 per cent back in late-2008."
