SSAs swoop for size as money funds step back from banks

27 May 2010

Volatile markets left financial and corporate names struggling to get European commercial paper issues away this week, but triple-A borrowers benefited. Some money market funds have already pulled out of the ECP market, while continuing uncertainty leads these important buyers to expect further withdrawals.

"A lot of the money funds are concerned that they may get more than the usual amount of month-end redemptions," said one CP dealer in London. "There are buyers out there, though there are fewer of them, and they’re exercising their buying power to demand slightly higher yields."

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