Two ranking Congressmen sent the Securities and Exchange Commission a letter yesterday, urging Chairman Christopher Cox to cut a break on redemptions on auction-rate securities for mutual fund portfolio managers and their supporting operational and compliance teams. The Congressmen pointed to illiquidity and hard-to-price conditions for auction rates today.
Specifically, the two asked for relief on asset-coverage tests, as some closed-end funds are now asking their investors to hold off on redemption orders, or going into private placement markets, as MME reported yesterday.
