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Money Fund Sponsors May Be Under Most Stress Ever, Moody's Says
2007-11-19 (Shannon D. Harrington - Bloomberg)
Companies that run U.S. money-market funds are under more stress than ever to protect them from losses on investments in structured investment vehicles and commercial paper backed by mortgage bonds, Moody's Investors Service said.
``You're seeing more stress perhaps than we've ever seen before both in terms of the number of issues that are involved and the aggregate market value of the troubled securities,'' Henry Shilling, who runs the managed funds group at New York-based Moody's, said in an interview.
The 10 largest managers of U.S. money-market funds owned a total of about $50 billion in short-term debt of SIVs, some of which has defaulted, company disclosures and regulatory filings show. At least seven companies have bought distressed debt from money funds or committed financing to keep them from losing their top credit ratings.
2007-11-19 (Shannon D. Harrington - Bloomberg)
Companies that run U.S. money-market funds are under more stress than ever to protect them from losses on investments in structured investment vehicles and commercial paper backed by mortgage bonds, Moody's Investors Service said.
``You're seeing more stress perhaps than we've ever seen before both in terms of the number of issues that are involved and the aggregate market value of the troubled securities,'' Henry Shilling, who runs the managed funds group at New York-based Moody's, said in an interview.
The 10 largest managers of U.S. money-market funds owned a total of about $50 billion in short-term debt of SIVs, some of which has defaulted, company disclosures and regulatory filings show. At least seven companies have bought distressed debt from money funds or committed financing to keep them from losing their top credit ratings.