Tuesday 26th July 2016
NEWS TICKER: JULY 26TH 2016: CACEIS is now depositary for the first two mutual ship funds under the German KAGB investment act. The two closed-end funds, “MS Marguerita” and “MS Tanja”, will both be managed by “MST AIFM Eins Fonds manager GmbH”, which is the investment management company of “MST Mineralien Schiffahrt Spedition und Transport GmbH.” Matthias M Ruttmann, managing director of MST explains: “We found CACEIS to be a flexible service provider, keen to seek out solutions for new asset types: Our ships will be the first of this asset type to be structured in a German AIF. We have put our trust in CACEIS`s experience in dealing with regulations and launching funds holding new asset types, so will have a solid framework for the launch of the funds.” Holger Sepp, Member of the Management Board at CACEIS in Germany added: “When entering the closed-end funds industry, we clearly committed ourselves to delivering depository service to all major asset types. We are very proud that MST has put its faith in CACEIS`s willingness and ability to service its ship AIFs. During the last couple of months, we have ensured we are fully prepared to handle all relevant requirements for the funds such as the depository function and relevant legal aspects.” -- Carillion, part of a 50:50 joint venture with Dutch Infrastructure Fund, have achieved financial closure on the Irish Schools Bundle 5 Public Private Partnership project that has been procured by the Department of Education & Skills alongside Ireland's National Treasury Management Agency. The joint venture will finance, build and operate five schools and an institute of further education located in counties Meath, Carlow, Wicklow and Wexford. The London-listed company said those construction activities alongside its equity interest will mean the project will generate around £190m of revenue for the business. Separately, EUS-Rokstad, a joint venture between Emera Utility Services and Rokstad Power, a business in which Carillion holds a 60% stake, has won a new contract in North America. The venture has been chosen by NSP Maritime Link Inc, a subsidiary of Emera Inc, as the transmission line contractor for its Maritime Link project that will transmit energy from Newfoundland to Nova Scotia and will connect Newfoundland to the North American grid for the first time in history. The joint venture will complete the high voltage direct current transmission line link under the contract, which is worth a total of £86m to the joint venture -

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Prime money market funds credit profiles weaken says Moody's

Thursday, 09 May 2013
Prime money market funds credit profiles weaken says Moody's The credit profiles of euro-denominated, US prime, and sterling prime money market funds (MMFs) worsened slightly in the first quarter of 2013, says Moody's Investors Service in its quarterly MMF reports published today. According to the ratings agency  continued constraints on supply of high-quality short-term assets, and the prolonged period of low interest rates leading MMF portfolios to migrate to lower rated assets are behind the deterioration. Moody's quarterly MMF reports evaluate market trends and the evolution of MMFs' risk factors, including credit, liquidity and market risks, based on the aggregated data of Moody's rated MMFs. http://www.ftseglobalmarkets.com/

The credit profiles of euro-denominated, US prime, and sterling prime money market funds (MMFs) worsened slightly in the first quarter of 2013, says Moody's Investors Service in its quarterly MMF reports published today. According to the ratings agency  continued constraints on supply of high-quality short-term assets, and the prolonged period of low interest rates leading MMF portfolios to migrate to lower rated assets are behind the deterioration. Moody's quarterly MMF reports evaluate market trends and the evolution of MMFs' risk factors, including credit, liquidity and market risks, based on the aggregated data of Moody's rated MMFs.

Prime euro-denominated MMFs experienced further credit deterioration and maturity extensions in Q1, largely driven by the prolonged low rate environment and constraints on supply of high-quality assets. Their credit profiles saw a modest deterioration in Q1 2013, reflected by the decrease in investments in securities rated Aaa, Aa1 and Aa2, claims Moody's. Overnight liquidity decreased significantly to 30.5% of assets under management (AUM), after it peaked at 37.4% at end-2012, due to the continued pressures on funds' yields, and the resulting need for funds to invest their cash in higher- yielding instruments, it adds.

The low interest-rate environment and low yields across the sector prompted a decrease in euro MMFs AUM to 74.8bn. The increased exposure to relatively long-dated securities—combined with the modest credit profile deterioration—increased funds' sensitivity to market risk. As the credit pressures on European banks continue, funds' aggregate exposure to European financial institutions decreased 20% to €29bn at the end of March from €36bn at the beginning of the quarter. Exposure to UK financial institutions decreased significantly by 51%, followed by German (-27%) and French financial institutions (-10%).



Meanwhile, there has been  a modest credit deterioration, as 2.2% of investments in US domiciled funds and 3.8% in offshore domiciled funds moved from Aaa and Aa-rated securities to A-rated securities. Approximately 23% of investments in all Moody's-rated MMFs were rated Aaa, says Moody's. Overnight liquidity remained high, at around 39% of US domiciled fund assets and 34% in offshore domiciled funds on average.

In addition, the funds' sensitivity to market risk increased modestly in this quarter due to the increased exposure to slightly longer-dated securities combined with the modest deterioration in funds' credit profiles.

Combined AUM of U.S. domiciled funds declined 3.5% to $662bn, while the combined AUM of European and offshore domiciled funds increased 3% to $242bn.

Moody's says that prime sterling-denominated MMFs experienced further credit deterioration and maturity extensions in Q1, largely driven by the prolonged low rate environment. Funds' credit profiles saw a modest decline in credit quality, due to the credit degradation of the UK, as reflected by Moody's downgrade of UK government's bond rating in February by one notch to Aa1. Sterling MMFs' liquidity trend has been negative throughout Q1, due to fund managers' increased investment of cash and cash-like securities in their search for higher yield. This also led to increase the funds' WAM by 3.8 days throughout the quarter. Given the increased exposure to relatively long-dated securities, combined with the modest deterioration in the credit profile, funds' sensitivity to market risk increased.

Combined AUM increased by 2.5% to GBP114.8 billion during the quarter, despite the low interest-rate environment and low yields across the sector. While exposure to European financial institutions remained stable during the quarter at 49% or GBP56 billion, there have been significant country shifts. Exposure to Dutch and French financial institutions decreased by 5% and 4%, respectively, and exposures to UK and Swedish financial institutions increased by 19% and 6%, respectively.


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