Federated Investors Bails Out Cash Fund After Losses
Federated Investors Bails Out Cash Fund After Losses
By Sree Vidya Bhaktavatsalam and Christopher Condon
Nov. 20 (Bloomberg) -- Federated Investors Inc., the third- largest manager of money-market accounts in the U.S., bailed out its Enhanced Reserve cash fund as declines in mortgage-backed securities caused the credit markets to seize up.
Federated allowed clients to withdraw their money without losses, spokeswoman Lindsy Kollar said. She wouldn't disclose the size of the fund or the amount or cause of the losses. The Pittsburgh-based company wrote down $4.9 million of its $5 million investment in Enhanced Reserve, a partnership open only to accredited investors, according to a regulatory filing.
By Sree Vidya Bhaktavatsalam and Christopher Condon
Nov. 20 (Bloomberg) -- Federated Investors Inc., the third- largest manager of money-market accounts in the U.S., bailed out its Enhanced Reserve cash fund as declines in mortgage-backed securities caused the credit markets to seize up.
Federated allowed clients to withdraw their money without losses, spokeswoman Lindsy Kollar said. She wouldn't disclose the size of the fund or the amount or cause of the losses. The Pittsburgh-based company wrote down $4.9 million of its $5 million investment in Enhanced Reserve, a partnership open only to accredited investors, according to a regulatory filing.