TEXT-Fitch:European MMFs investing in longer-dated non-bank assets
November 26, 2012 at 04:33 AM EST
Nov 26 - Fitch Ratings says in its newly-published sector update that European MMFs are reallocating their portfolios towards longer-dated assets issued by highly-rated supranationals, government agencies, sovereigns and corporates, while maintaining high overnight liquidity, amid sharply declining yields. However, MMFs' strong demand for such assets is still far from being satisfied given limited short-term market supply.
