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Spooked money market funds increase stress testing

Money market funds have begun increasing the number of stress tests on their portfolios amid worries about the US economy

Money market funds have increased the number of stress tests conducted on their portfolios because of fears about the failure of the US government to solve its debt crisis.

Investor Analytics, a New York-based risk management firm, has received double its normal number of requests from money market clients asking for portfolio stress tests, after the failure of Congress to reach a solution to the debt crisis and the decision by S&P and Moody's to place the US on potential credit downgrade.

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