While many money funds and other investors have been lightening up on European assets, eight of the 20 biggest money funds have increased their European holdings in the 10 months leading up to May, according to a story in the Wall Street Journal.
The managers that have added European assets, including BlackRock and Goldman Sachs, argue that they are not adding to their risk because they're buying repurchase agreements issued by European banks. The repos are backed by collateral such as government securities that would be used to make the money funds whole should the banks run into problems.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
