Fidelity sells off short-term U.S. government debt

Fidelity said Wednesday that it no longer holds any U.S. government debt that comes due around the time the nation could hit its borrowing limit.
By KEN SWEET Published: October 10, 2013
Advertisement
;

She said Fidelity has been restructuring its portfolio to focus on securities that mature later this year or in early 2014. She said Fidelity has also moved a significant portion of its portfolio to cash.

Money market funds are a significant part of the U.S. financial system, considered by investors as a safe place to put their money in the short-term. Individuals and institutional investors have roughly $2.685 trillion invested in money market funds, according to data from the Investment Company Institute.

Money market funds are typically ultrasafe places to park money. In a money market fund, investors expect to get back every dollar they invest.

Fidelity's actions underscore what traders have noticed the last week. Investors have dumped U.S. government debt that comes due this month, with the heaviest selling in one-month Treasury bills. Money market mutual fund managers don't want to be caught holding U.S. government debt that comes due around the time the government hits the debt ceiling, said Gabriel Mann at the Royal Bank of Scotland Group.



Trending Now


AROUND THE WEB

  1. 1
    Sex Valley: Tech's booming prostitution trade
  2. 2
    Colorado Is Consuming Way More Pot Than Anyone Ever Believed
  3. 3
    What Dan Gilbert said to LeBron James to get him to return to Cleveland
  4. 4
    Female Yahoo Exec Sued By a Female Employee for Sexual Harassment
  5. 5
    A company wants you to experiment on Facebook — by quitting
+ show more