Money Funds Bracing for SIV Inquiries and, Paradoxically, Inflows. Following the August panic in the asset-backed commercial paper market and last week's concerns about SIVs, or structured investment vehicles and the launch of a "super-conduit" to back them, money market mutual funds are undoubtedly preparing to again launch a series of communications to shareholders in an attempt to explain why funds and especially fund investors should remain sheltered from these problems. Expect letters and conference calls shortly. In a continued paradox, we should also expect a continued flood of assets into money funds as institutional investors attempt to delay the impact of an increasingly likely Halloween interest rate cut by the Federal Reserve. Funds have also benefited from a surge of corporate, financial and "conduit" cash moving into the big, safe, diversified pools. Money funds have averaged inflows of 3.4% a month during periods of falling rates, and have averaged inflows of 5.1% over the past two months.
