Trouble in ABCP Market as Secured Liquidity Notes (SLNs) Are Extended. The meltdown in the CDO marketplace has begun impacting money market funds, though in a limited fashion. Several SLN (secured liquidity note) programs extended yesterday, including American Home Mortgage-related Broad Hollow Funding, Luminent Star Funding, and Ottimo Funding Ltd.. The Broad Hollow program extended for 4 months, and Luminent extended for 110 days. Only a handful of money funds held these securities as of recent filings, and the holdings appeared to be very minor (<2%). Some money funds have avoided extendible asset-backed commercial paper because the investor provides the liquidity. The penalty step-up in yield for extension may be some solace for any companies holding these now illiquid securities. We've also heard that several auctions for ARS (auction-rate securities) have failed in recent days. (See MFI for details.)