More money funds are bailed out

More money funds are bailed out	ray_heritage	12/28/2007 2:59:44 AM
Morethan 10 North American banks and fund managers have collectivelyinjected $3bn into their money market and cash funds since October tostem losses. This week, the fund manager, Janus, became thelatest to bail out its money market funds. It put in $109m to buytroubled asset-backed securities from its funds. Half a dozen firmshave made similar moves. The bail-outs, in the form ofguarantees, credit lines and the buying out of troubled securities, areintended to stop funds falling below the $1 a share promised toinvestors. They show how seriously the parent companies take thereputational risk of “breaking the buck”. Not all bail-outs have been made public but more are believed to be being drawn up. The extent of losses is not yet known. link