Cancellation of Enron-exposed MMFs tops 2 tril. yen.
The amount of canceled money management funds (MMF) incorporating bonds of failed Enron Corp. has exceeded 2 trillion yen since last Wednesday when the U.S. energy giant was on the verge of collapse, brokerage houses said Tuesday.
The total balance of MMFs came to 3.3 trillion yen as of last Wednesday but it fell to around 800 million yen as of Tuesday as their prices dipped below their par values on Enron's filing for court protection from its creditors Sunday.
The relevant MMFs are five types which were sold by four financial firms including Nikko Asset Management Co. and UFJ Partners Asset Management Co.
MMFs, the Japanese equivalent of money market funds in the United States, draw investors seeking stable returns. They are designed to invest more than 50% of collected funds in bonds, with the remainder invested in short-term financial instruments such as certificates of deposit.
The burgeoning wave of cancellations has begun to submerge MMFs generally, including those that do not incorporate Enron bonds.
|Printer friendly Cite/link Email Feedback|
|Comment:||Cancellation of Enron-exposed MMFs tops 2 tril. yen.|
|Publication:||Japan Weekly Monitor|
|Date:||Dec 10, 2001|
|Previous Article:||LEAD: Shinsei Bank's effective net profit doubles in 1st half.|
|Next Article:||Shinsei Bank's net profit plunges 52% in 1st half.|