Sign up today and take advantage of member-only content — the kind of timely, cutting edge industry insight that only Money Management Executive can deliver.
  • Exclusive Online Only Content
  • Free Daily Email News Alerts
  • Asset Management Blogs

SEC Gives Managers of Money Funds Freer Hand


In light of the crisis of confidence in rating agencies following the subprime crisis, the Securities and Exchange Commission will diminish the importance of money market fund managers' reliance on such agencies when investing in short-term debt.

This is expected to have wide repercussions in the $3.4 trillion money market industry, likely resulting in a wider variety of investments by money market funds, particularly lower-rated short-term debt.

But critics counter that rather than lessen reliance on ratings agencies, the SEC should go back to the drawing board to improve their assessments of companies, as many investors continue to rely on Moody's, Standard & Poor's and Fitch.

(c) 2008 Money Management Executive and SourceMedia, Inc. All Rights Reserved.

http://www.mmexecutive.com http://www.sourcemedia.com