The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Conduits Transmit Stock Loss to State Street Not Rated 3.0 Email Routing List Email & Route  Print Print
Wednesday, August 29, 2007

Conduits Transmit Stock Loss to State Street

by: Sean Hanna, Editor in Chief

Conduits are one reason why State Street Corp. shares lost more than four percent of their value on Tuesday, report both the Boston Globe and Wall Street Journal. The conduits are four LLCs dubbed Clipper, Galleon, Spinnaker, and Schooner that bundle loan assets from banks and sell them to mutual funds and institutions. Roughly 40 percent of the fund industry now uses the conduits. The market's fears are likely overblown. The conduits do not hold mortgage-related assets and State Street officials told the Globe that the assets in the conduits are of high quality. The WSJ is even more blunt.

"Arlene Roberts, a State Street spokeswoman, said 'there isn't an issue' with the conduits, and said the company was 'just baffled' by interest in them," the paper reports.

"State Street's conduit program was established at the request of our clients and has been in place since 1992. The credit quality of the assets is very good -- primarily AAA/AA assets," Roberts added. "The commercial paper continues to be sold daily."  

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2020: Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use