| Higher-yield bond funds run into trouble
In one of the more spectacular meltdowns in mutual fund history, Schwab YieldPlus - marketed as a higher-yielding alternative to money market funds - has plummeted to just $2.5 billion in assets from more than $13 billion in May. The shrinkage reflects both a decline in the fund's asset value and a mass exodus by investors. Year to date through Thursday, Schwab YieldPlus has lost 13.4 percent of its value, ranking dead last among ultra-short bond funds, according to Morningstar. The average fund in that category is down 1.5 percent this year. A decline of that magnitude would not be unusual for a stock fund but is rare for a fixed-income fund, especially one that invests in short-term securities. Schwab YieldPlus is not the first but is by far the largest ultra-short-term bond fund to run into trouble as a result of its exposure to subprime and other mortgage-backed securities.
(AFX UK Focus) 2008-03-28 09:24 GMT: Taiwan central bank drains 169.12 bln twd via 2.04/2.13/2.23 pct NCDs
TAIPEI (XFN-ASIA) - The central bank said it drained a combined 169.12 bln twd from the money market via offers of negotiable certificates of deposit, including 122.20 bln twd via 30-day NCDs at a fixed rate of 2.04 pct. The bank also drained 30.92 bln twd via an offer of 91-day NCDs at 2.13 pct and 16.00 bln twd via 182-day NCDs at 2.23 pct, it said. In today's late trade, the average overnight interbank rate was quoted at 2.076 pct, compared with the previous close of 2.080 pct, dealers said. (1 usd = 30.40 twd) adela.lin@afxasia.com - xfnal/xfnrc COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
Stock market takes a tumble
THE stock market slipped further yesterday on the back of firming money market rates after the central bank raised secured and non-secured lending rates.
Money market dealers were quoting between 120-150 percent for short term paper and between 160-220 percent for 30, 60 and 90 papers.
At the start of trading on Tuesday, the bourse had weakened following Government's initiative to crack down on illegal price increases and threats to foreign-owned companies.
At close, the industrial index lost 5,4 percent to 10 754 948 055,21 points and the minings index fell 15,01 percent to 6 624 814 358,69 points after losses in Bindura and Falgold.
KMAL was $5 million lower to $50 million after its 2 007 full year results. The group reported pretax profit of $275,6 trillion against the comparable figure in the year ago period of $1,31 trillion.
SHORT-TERM RATES TO REMAIN STEADY
KUALA LUMPUR, March 27 (Bernama) -- Short-term rates are expected to remain steady today on continued intervention by Bank Negara Malaysia in the money market. The central bank estimated today's liquidity surplus at RM18.682 billion, of which RM14.368 billion were from the conventional system and RM4.318 billion in Islamic funds. In the conventional system, Bank Negara has called for four conventional tenders to borrow RM1.5 billion for two week, RM1 billion for three weeks, RM2 billion for one month and RM2 billion for 46-days. The central bank has also called for two Al-Wadiah tenders to borrow RM500 million for one week and RM1.5 billion for one month. It would also conduct a repo tender of RM1 billion for 60 days. -- BERNAMA SM LES .
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