Dow Jones writes "Money Fund Managers Admit Unease, Shorten Europe Exposure". It says, "U.S. money-market fund managers, who are a key link in the chain of financing European banks, admitted Tuesday they're feeling a bit uneasy in the face of the region's sovereign-debt risk. Money market fund managers are letting some commercial paper holdings expire due to the concerns, said Deborah Cunningham, Federated Investors Inc.'s (FII) chief investment officer for taxable money markets. But they're not making wholesale changes." She said, "I don't think you're seeing issuers not getting funded because of this. Nobody's withdrawing their funding." Dow Jones says, "The portrait that U.S. money fund managers paint is not one of outright panic, as occurred when credit markets locked up in 2008. Instead, they say, they're becoming more cautious, adjusting portfolios around the margins. That process, over the past month, has led to rising borrowing costs for European financial institutions. Due to a confluence of factors including credit concerns, new liquidity rules and worries about rising interest rates, U.S. money funds are holding commercial paper from European banks that is shorter in term than that held before." See also, WSJ's "Europe-Bank Lenders? Coalition of Unwilling".
