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Article: Securities lenders see little help in Federal Reserve move.
- Article from:
- Pensions & Investments
- Article date:
- January 12, 2009
- Author:
CopyrightCOPYRIGHT 2009 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Jing Zhou
Index fund providers and other big securities lenders that have had trouble redeeming cash collateral from securities lending operations were offered a glimmer of hope in the Federal Reserve's expansion of its money market investor funding facility - but just a glimmer.
In a Jan. 7 announcement, the Fed said securities-lending cash-collateral reinvestment funds, securities lenders and certain local government investment pools would be allowed to sell impaired assets to the facility.
But because the facility will only buy a limited list of securities - namely commercial paper, bank certificates of deposit and bank notes - it ...