Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Treasury Move is Embraced by the Industry Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, September 19, 2008

Treasury Move is Embraced by the Industry

Reported by Erin Kello

The Treasury's unprecedented move to guarantee the NAV of money market funds received cautious optimism from industry insiders insiders today and may even help save one Putnam fund.

"The measure has certainly stopped the bleeding for now," Peter Crane, president and CEO of Crane Data, told the MFWire.

Crane declined to comment on the long term effects of the guarantee saying, "forget next year, we're thinking about next week."

Only one fund, The Reserve Primary Fund, actually broke the buck during the crisis and Crane says that the majority of money fund sponsors would have been in the clear without the rescue. "Only a handful of funds were on the precipice, "Crane said.

As for the Putnam money market fund that announced its liquidation on Thursday, Crane said that the Treasury's decision could pave the wave for the fund to re-open, even though it is unclear if the fund's NAV ever fell below a dollar.

Crane said that the Treasury's move may retroactively boost the NAV of the Putnam fund. "If an NAV falls in the forest and no one is there to see it, did it happen?, "Crane said.

Mutual fund firms that sponsor money market funds are being cautiously optimistic.

Dana Grosser, a spokeswoman for SEI, told the MFWire that the firm is "looking forward to seeing further details of plan."

Laura Fay, a spokeswoman for Evergreen Investments, told the MFWire, "We think this is a positive step for the industry. We are reviewing the the plan and as more details emerge we will take action in the best interest of the shareholders."

Megan McAndrew, a spokeswoman for Federated Investors, told the MFWire, "We think the Treasury's move will provide comfort and support in the markets. Federated supports the move because we think it will bring stability and liquidity to the markets." 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use