Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (2219)	11/11/1999 3:59:00 PM
From: Enigma	Read Replies (3) \| Respond to of 3536

"DD, that's why most mutual funds have set up lines of credit with the Fed so that they can handle a huge outflow of redemptions without having to panic sell their portfolios" Is that true? - and do you have any evidence to support it? I can understand a fund having a line of credit with a commercial lender - so that, for example, it could buy a security without immediately having to sell another - but a blanket line of credit with the Fed? - somehow I doubt it - and certainly not for all mutual funds. I do know a little about this sort of thing - having been President of a group of mutual funds - in Canada - not the states - and I can tell you that it is most imprudent for fund managers to take the attitude you espouse of them - in other words - keep minimum cash on hand - because a lender will bail them out. And I realise that cash levels have been very low for some time - that doesn't mean a thing if the markets really tank - the word then is SELL d