US financial institution Northern Trust has put aside $229m (â¬154.7m) to support money market funds with investments in downgraded structured investment vehicles, making it the latest asset manager forced to keep cash funds at par value.
The firm on Friday pledged to spend up to $229m to support the value of eight money market funds, if they fall in value as a result of holdings in structured investment vehicles. All eight funds have holdings in Whistlejacket Capital or White Pine Finance - SIVs that have been downgraded by rating agencies.
