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

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

Rating:Northern Trust's Support is a Flashpoint for Money Market Debate Not Rated 0.0 Email Routing List Email & Route  Print Print
Tuesday, July 3, 2012

Northern Trust's Support is a Flashpoint for Money Market Debate

News summary by MFWire's editors

Northern Trust [profile] has stepped in to support a Norwegian lender whose debt rating has been downgraded, perhaps a key moment in the heated debate over the future of money market funds.

Reuters reports that the Chicago trust put aside $69.7 million to support Norwegian lender Eksporfinans, which was downgraded by Moody's.

The Chicago bank said it did not suffer losses upon buying the notes but others claim that the fund sponsor still faced extra cost and risk on the move.

Kenneth French, director of strategy at Dimensional Fund Advisors and a Dartmouth College finance professor, told Reuters:

"If Northern at the time of the transaction thought they were not subsidizing the funds, (then) I have a lot of bonds I would like to sell (to) them."

A statement from Northern Trust said that the sale of Eksporfinans notes was an effect of Moody's plans to downgrade funds that held the notes. A February 3 SEC filing revealed that Diversified Assets Portfolio and Prime Obligations Portfolio held the notes, but later sold them to their parent Nothern Trust for $50.3 million and $19.4 million, respectively. 

Edited by: HFD


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

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
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:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use