Issuers prepare for changing MMF investment tactics

By Kathleen Gallagher
15 May 2014

Issuers have started to respond to a shift in asset allocation approaches from money market funds, with highly rated borrowers selling sub-one year covered notes and lower rated names contemplating entering the commercial paper market.

“Some [money] market funds have started investing in covered bonds,” said Charlotte Quiniou, a director of Fitch's fund and asset manager rating group. 

“Although the average allocation to such assets is still marginal, 0.4% on average, we expect a growing number of funds to have an interest in these ...

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