“Mark-to-mkt declines on U.S. govt exposures are probably manageable assuming any default is short lived/absent sign.redemption activity”
US one-month T-bill yield eases to 0.2485% this morning, although LIBOR rates are higher
Socgen: The S&P 500 index has almost tripled since March 2009, gaining 170% (dividends included), significantly outperforming peers
LONDON, Oct 4 (Reuters) – Fears of a U.S. default are
creeping up in financial markets, with stress in short-term
funding markets and bets on prolonged money printing by the
Federal Reserve giving money market funds a fresh headache.
Hemorrhaging from money market funds has intensified this
year as investors have switched from cash investments that give
low or even negative return into instruments that benefit from a
recovering economy, such as equities.