​ 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.)

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