What's a money market fund manager to do about the downgrading of Merrill Lynch? Shefali Anand reports in Thursday's Wall Street Journal Fund Track that $4 billion to $6 billion in short-term municipal securities tied to Merrill are held by money funds. Municipal Market Advisors managing director Matt Fabian told the Journal that some managers have already sold the securities in question back to Merrill after S&P downgraded Merrill's rating from A-1 plus to A-1, and the Journal worries that more investors will sell such securities back to Merrill it the wirehouse gets downgraded again. 

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