Money Funds in Europe Cut Italian, Spanish Holdings, Fitch Says
European money-market funds are cutting holdings of Spanish and Italian assets and shortening the maturities of those that remain as the sovereign debt crisis deepens, Fitch Ratings said in a report today.
The funds continue to hold the debt of the strongest sovereigns and financial institutions of France, Germany and the U.K., according to the report.
European money-market funds have assets under management of 1.1 trillion euros ($1.5 trillion), after a 6 percent decline in the first six months of the year as savers made “substantial withdrawals in June,” according to Fitch. Assets probably were flat in the third quarter, the ratings company said.
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