Money Funds’ Risk Rises Over Debt Cap Debate, Moody’s Says
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The impasse in Washington over raising the federal debt ceiling has exposed U.S. money-market mutual fund clients to increased danger, according to Moody’s Investors Service.
“Direct risks include the potential for a missed interest or principal payment on government bonds for a short period of time, as well as incremental weakening of the overall credit quality of money-market fund portfolios that have U.S. government exposure,” the New York-based ratings company said today in a statement.