Money market funds at risk too - thanks to the mortgage mess | Mortgages,Taxes,Stocks,Insurance,Loans,Credit

Money market funds at risk too - thanks to the mortgage mess

October 23rd, 2007 | Category: Stocks

Yesterday I wrote about mutual funds at risk considering of the mortgage mess. In response one of my readers (thanks Gary!) alerted me to an write-up in Fortune talking about how the safest of investment vehicles — money market funds - are caught up in the SIV problem. Again Bank of America (NYSE: BAC) comes to the top of the pack as hosting some of the riskiest investments for its investors through Columbia Cash Reserves Fund. Fortune reported that as of Oct. 12 that fund has about $640 million in Cheyene Finance, an SIV in trouble.

When I took a look at its most recent report to shareholders (Feb.

28,2007), I found Columbia Cash Reserves Fund had five of the biggest SIVs in its portfolio including Cullinan (HSBC Bank), K2 (Dresdner), Sigma (Gordian Knot), hyperlinks Finance (Bank of Montreal) and Sedna (Citibank International). In addition to these five, the other major SIVs are Centauri, Beta Finance and Five Finance — all managed by Citibank (NYSE: C) - Tango Finance managed by Rabobank worldly and Victoria Finance managed by Ceres Capital Partners.

Continue reading Money market funds at risk too - thanks to the mortgage mess

Original post by Lita Epstein

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