Janus Capital can't seem to catch a break in this bear market. Yesterday, the firm took the ultimate step of repurchasing $85 million worth of commercial paper from the Janus Money Market Fund to keep the fund from breaking the buck. The paper had been issued by ABB Ltd., a Switzerland-based engineering firm that saw its credit rating slip to Ba2 from Baa3 on October 31.

The rating downgrade was made by Moody's Investors Service on ABB's senior debt. The agency also confirmed its "non-prime" rating on ABB's short-term debt.

The move was preemptive as ABB has not defaulted on any payments due to bondholders as of yet. Janus revealed its action through an SEC filing made yesterday. In that filing it also revealed the repurchase was made by tapping $41 million from its credit line. It also used an additional $44 million raised through short term borrowing of its own. Janus plans to repay the loans when the ABB note matures in January.

The move comes soon after the close of a very disappointing third quarter at the firm. While it was profitable on an operating basis, the fund firm reported a loss after taking restructuring charges and writing down losses in its private-equity portfolio. Janus has been especially hard hit by losses in its stable of growth equity funds that have cut the assets it manages by more than half since the Nasdaq peaked.  

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