Cash Plus Money Loan - Sub-Prime? So Over! Part II - Gold Seek
The Missouri State Employees’ Retirement System held another $25 million; the New Mexico State Investment Council owned more than $222 million of these high-risk products. Indeed, the New Mexico State Investment Council opted as recently as April ‘07 to buy another $300 million in subprime equity according to David Evans in his June 1st report for Bloomberg. After all, money market funds are designed to offer “immediate liquidity, safety and a reasonable rate of return” according to Bruce Bent, founder of the Reserve Fund 35 years ago. Paper debt “laced with subprime home loan securitizations” accounted for more than 5% of Wells Fargo’s Advantage Money Market Fund in June; Credit Suisse’s Prime Portfolio had 8% of its assets exposed to subprime mortgages; two funds run by A. No prizes for guessing what Barclays “master fund” is exposed to, starting with the “special investment vehicles” (SIVs) that investment banks have used to fund and expand the subprime-mortgage bond market. Find Out More
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