Crane Data Subscribers
Credit Suisse Purchased Money Fund Securities Says Wall Street Journal. In the second confirmed instance of a fund advisor purchasing securities to protect its money market funds during the recent asset-backed commercial paper crisis, Credit Suisse said on its earnings call, "We took steps to reposition certain of our U.S. money-market funds and purchase securities from these funds" to "address liquidity concerns caused by the U.S. market's extreme conditions," reports The Wall Street Journal. Credit Suisse purchased ABCP, FRNs (floating rate notes) and "notes issued by collateralized-debt obligation vehicles and structured investment vehicles" from its CS Inst Prime MMF. The company booked unrealized "value reductions" totalling approximately $125 million and said it saw over $20 billion in money fund outflows, including "offshore" funds and "cash" separate accounts. It was the only money fund manager with substantial asset declines during the 3rd quarter, down over 45%, according to Money Fund Intelligence's Distribution Survey. Northern and First American's money funds had marginal asset declines, falling 1.5% and 2.9%, respectively. But all other fund families showed gains among the 30 largest, averaging increases of 13.9% in the 3rd quarter.
