Janus buys $109m worth of securities.
Janus said in a filing with the US Securities and Exchange Commission that it was buying the securities from its Institutional Money Market Fund, the Janus Money Market Fund and the Institutional Cash Management Fund to protect investors from losses after the securities were downgraded by Moody's Investors Service on Friday.
Although the securities remain investment grade, the company is taking this action to protect investors in the funds from possible losses associated with the downgrade," it said.
The securities were issued by Victoria Finance through Stanfield Victoria Funding, Janus said. Victoria Finance is a structured investment vehicle (SIV) sponsored by Ceres Capital Partners.
Janus said it was unable at this point to provide a preliminary estimate of any potential write-down as it has not received the valuation of the securities following the downgrade.
Structured investment vehicles are funds that raise cash by issuing short-term debt and using the proceeds to buy higher-yielding assets such as US mortgage bonds.
The vehicles, often created by banks, have run into trouble this year due to exposure to risky mortgages.
SunTrust Banks said it would take up to $400m in fourth-quarter pretax write-downs.
Copyright [c] 2008 Gulf Daily News
Provided by Syndigate.info an Albawaba.com company
|Printer friendly Cite/link Email Feedback|
|Publication:||Gulf Daily News (Manama, Bahrain)|
|Date:||May 1, 2008|
|Previous Article:||Chrysler 'exceeding financial targets'.|
|Next Article:||AXA purchases $1.2bn Russia insurer's stake.|