Due to the credit crisis caused by subprime mortgage loans, money market funds are beginning to cut back on all types of asset-backed securities, not just those funded with mortgages, The Wall Street Journal reports. Many managers are concerned about such securities’ risks and fear that they might delay or default on repayment.
Instead, they are moving into safer, more liquid and easier-to-trade instruments, such as Treasurys and government bonds.
One firm that has recently cut back on asset-backed paper is
