am reading this morning some very credible reports that large money market instruments are holding CDO, CLO and similar positions. these were bought to reach a target yield but now assets are being marked to less than par and redeeming funds will present problems. Wall Street has sold CDOs and CLOs to many public pension funds who are now attempting to reject those sales and asking to be paid par back to the funds.
wonder how many 401k plans and large banks are in this mess and how long it will take for it to hit the news?
employees of large corporations with money market and stable value type accounts may incur large losses