The $3,400bn money market funds which have been one of the latest targets of the credit crunch have been bolstered by two aggressive steps by the US government.
Up to $50bn of losses would be guaranteed by the US Treasury at least temporarily. “For the next year, the U.S. Treasury will insure the holdings of any publicly offered eligible money market mutual fund — both retail and institutional — that pays a fee to participate in the program,” the Treasury said in a statement.
Separately the Federal Reserve, would expand its emergency lending program to help commercial banks finance the purchase of asset-backed securities from the funds.
A massive $170bn has been withdrawn in the last week. A number of funds have "broken the buck" or fallen below the standard net asset value of $! a share.
“This action should enhance market confidence and alleviate investors’ concerns about the ability for money market mutual funds to absorb a loss,” the Treasury statement said. “Investors in money market mutual funds with a net asset value that falls below $1 would be notified that their fund triggered the insurance program.”M
Showing posts with label money market. Show all posts
Showing posts with label money market. Show all posts
Thursday, 18 September 2008
Federated Investors Try to Reassure
Federated Investors, Inc. (NYSE:FII) provides an update on the money market funds the firm manages.
In light of recent market conditions, Federated wants to assure its fund shareholders and clients that the firm's money market funds continue to be high-quality investment products designed for use by fiduciaries and other investors who have stringent requirements for safety and daily liquidity at par. While money market funds are not guaranteed, Federated remains confident in its ability to maintain a $1.00* net asset value (NAV) across the money market franchise as the firm has done for over thirty years.
Federated will continue to manage money market funds with an unrelenting focus on credit analysis, high credit standards and maintenance of minimal credit risk. To this end, Federated uses an internal, proprietary credit analysis process and has its own ratings function. The firm has developed its own sophisticated systems and technological tools to assist its credit analysts in performing these vital functions.
Please note the following regarding Federated's money market funds: Federated's money market funds have no exposure to Lehman Brothers Holdings, Inc., American International Group, Inc. or Washington Mutual.
In light of recent market conditions, Federated wants to assure its fund shareholders and clients that the firm's money market funds continue to be high-quality investment products designed for use by fiduciaries and other investors who have stringent requirements for safety and daily liquidity at par. While money market funds are not guaranteed, Federated remains confident in its ability to maintain a $1.00* net asset value (NAV) across the money market franchise as the firm has done for over thirty years.
Federated will continue to manage money market funds with an unrelenting focus on credit analysis, high credit standards and maintenance of minimal credit risk. To this end, Federated uses an internal, proprietary credit analysis process and has its own ratings function. The firm has developed its own sophisticated systems and technological tools to assist its credit analysts in performing these vital functions.
Please note the following regarding Federated's money market funds: Federated's money market funds have no exposure to Lehman Brothers Holdings, Inc., American International Group, Inc. or Washington Mutual.
Wednesday, 3 September 2008
TwoFour Live with New Clien
TwoFour, announced the world’s leading global broker of exchange-listed futures and options, is live with TwoFour. The client licensed TwoFour for its London Treasury business and complete front to back processing across asset classes including foreign exchange, money market, cash management, exchange traded futures and options, OTC options, fixed income and interest rate swaps. Individuals from both firms worked collectively to enhance TwoFour’s product coverage to include interest rate swaps, fixed income, and internal arbitrage, and ended up with an outstanding product that meets the broker’s business requirements while providing the flexibility and scalability they require. The enhancement project leveraged TwoFour’s architecture and Software Development Life Cycle methodology with integrated automated testing and validates TwoFour’s ability to quickly and efficiently help organizations migrate onto their solution.
TwoFour provides a distinct advantage over their previous supplier by leveraging current technology that is designed to evolve as technologies evolve. TwoFour’s flexibility made it easy to quickly configure the application to meet the broker’s specific business needs. Once their required development was complete, the new solution was implemented in just a few months. Activities from the broker’s many businesses are fed into TwoFour in real-time allowing the broker to effectively manage its business as well as its clients’ business. TwoFour provides the broker’s front office with enhanced real-time position and profit and loss information for currency and interest rate exposures to facilitate better decisions in today’s fast moving markets. TwoFour’s integrated workflow and interface tools streamline the back office processing.
TwoFour provides a distinct advantage over their previous supplier by leveraging current technology that is designed to evolve as technologies evolve. TwoFour’s flexibility made it easy to quickly configure the application to meet the broker’s specific business needs. Once their required development was complete, the new solution was implemented in just a few months. Activities from the broker’s many businesses are fed into TwoFour in real-time allowing the broker to effectively manage its business as well as its clients’ business. TwoFour provides the broker’s front office with enhanced real-time position and profit and loss information for currency and interest rate exposures to facilitate better decisions in today’s fast moving markets. TwoFour’s integrated workflow and interface tools streamline the back office processing.
Subscribe to:
Posts (Atom)