​ Will State and Local Government Investment Pools Get Burned Again? Reports that King County, Washington has taken steps to purchase SIV-​lite Mainsail II and SIV Cheyne from the the $​4.​1 billion King County Investment Pool have raised concerns that some variable NAV state and local government investment pools and corporations, which, like "​enhanced cash" funds, sometimes purchase securities that money market funds can'​t or won'​t, could be facing small losses. King County (​Seattle) says, "Last week, the county took protective steps after learning of downgrades for Mainsail and Cheyne, two commercial paper investments in King County'​s investment pool portfolio [​the ninth largest in the country], which had the potential to impact the pool'​s high rating. The two investments make up about 2.​5% of the investment pool'​s assets or $​103 million," says a release. Concerns have also recently been raised about Orange County'​s Investment Pool, which went bankrupt in 1994 following a sharp decline in interest-​rate sensitive "​derivative" securities.

Your Name:
Your Email:
Recipient Email(s):

Use a comma or a semicolon to separate

Please retype symbols from the image:

Optional Message

Money Market News Archive