Bloomberg writes "Top Money Funds Doubled French Bank Holdings Last Month". The article says, "The 10 biggest prime U.S. money market mutual funds more than doubled their holdings in French banks in February, as lending from the European Central Bank bolstered investor confidence. French bank holdings rose to $18.2 billion from $8.8 billion in the month, according to data compiled and published in today's Bloomberg Risk newsletter. Funds run by New York- based JPMorgan Chase & Co. (JPM) and Boston's Fidelity Investments accounted for one-third of the total increase." Bloomberg quotes us, "It appears the risk trade is back on, but funds are still staying very cautious," Peter Crane, president of research firm Crane Data LLC in Westborough, Massachusetts." The piece adds, "The top U.S. money market funds have boosted lending to French banks for two straight months after withdrawing from them for most of 2011 because of concern that Europe's sovereign-debt crisis might lead to defaults. The European Central Bank offered three-year loans to the banks in December and February, easing funding worries surrounding French banks since August."
