"​S and P Cuts British Firm'​s Debt Rating" Writes NY Times. Standard & Poor'​s reduced the ratings on structured investment vehicle (​SIV) Cheyne Finance from A-​1 ("​First Tier") to A-​2 ("​Second Tier"). This will begin an "​unwind" of this mortgage-​related SIV. SIVs, or asset-​backed medium-​term notes (​MTNs) represent about 4-​5% of money fund holdings with mortgages perhaps representing half of this total. But "​senior investors, like money funds, will be paid first and '​taken out'" says Viktoria Baklanova of Fitch. U.​S. money funds should be fine, though European money funds, which invest in asset-​backed securities (​ABS), may face issues.

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